When a country has a comparative advantage, it indicates that it:

A country having a comparative advantage implies that it can produce a particular good at a lower opportunity cost compared to other goods. This means that the country can efficiently allocate its resources to produce that good more effectively than other countries, leading to increased overall economic efficiency and productivity in the production of that good.

Comparative advantage is a foundational concept in international trade that explains how countries benefit from specializing in the production of goods where they have a lower relative cost of production, allowing them to trade with one another for mutual benefit. This notion is distinct from being a net importer or having quotas, as they pertain more to market intervention and trade policies rather than intrinsic production efficiencies.

While the ability to produce goods more efficiently may suggest a broader efficiency advantage, comparative advantage focuses specifically on the opportunity cost of production, emphasizing the trade-offs involved. Thus, the correct understanding reinforces the idea that nations can gain from trade even if one country is less efficient across the board; what's crucial is producing the good that has the lowest opportunity cost relative to alternatives.