What does "its" and "which" refer to? There are few "its" and "which" in the sentence below, please explain briefly of their meanings. The theory of comparative advantage holds that even if a country is less efficient than another in the production of both commodities. i.e. it has absolute disadvantage in producing both commodities, there is still a basis for mutually beneficial trade. The first country should specialize in the production and export of the commodity in which its absolute disadvantage is smaller, i.e. the commodity of its comparative advantage. and import the commodity in which its absolute disadvantage is greater, i.e. the commodity of its comparative disadvantage. One more question, can you use another word to replace the word "hold" in the sentence above. Cause, I'm not sure about the meaning of it.