Brazil Is Very Good at Manufacturing Coffee but Does Not

Multiple Choice

Brazil is very good at manufacturing coffee but does not have easy access to automotive technology. Germany, on the other hand, has some of the best automotive technology in the world but does not have access to coffee. As a result, Brazil sells coffee to Germany and Germany sells automotive technology to Brazil. This best demonstrates the concept of

A) absolute advantage.
B) bartering.
C) countertrading.
D) balance of trade.
E) comparative advantage.