Bond risk : Interest Rate Risk

Thus, even though Country A has an absolute advantage in both goods, it benefits by focusing on wheat, and Country B benefits by focusing on wine. The result is mutual benefit through trade, even though Country B is less efficient in producing both goods.

Bond risk : Interest Rate Risk

Country A has an absolute advantage in both wheat and wine since it can produce more of both goods with the same resources compared to Country B.
However, when using opportunity costs, Country A has a comparative advantage in wheat because it has sacrificed less wine in order to produce wheat and vice versa.