In 2010, Switzerland-based Nestlé began sailing supermarket barges up and down parts of the Amazon River. The barges carry approximately 300 different goods and cater to about a dozen local communities that fish the Amazon's bountiful rivers and whose members lack the time and money to visit a conventional store. Which advantage from trade is illustrated in this passage?
A) differences in preferences
B) specialization
C) comparative advantage
D) Each of these advantages is illustrated in the passage.

Question

Quizplus · Accepted Answer

The passage illustrates comparative advantage, as Nestlé is able to produce and transport goods more efficiently than the local communities, who lack the resources to operate a conventional store.

In 2010, Switzerland-Based Nestlé Began Sailing Supermarket Barges Up and Down