This only applies in a market where consumers always make objectively ideal decision. This applies to smart phones, electric cars, and CPUs. (mostly, see post-

This only applies in a market where consumers always make objectively ideal decision. This applies to smart phones, electric cars, and CPUs. (mostly, see post-script) But for most goods, there is no such thing. What is the "best" tomato or a jar of honey for a consumer to buy? Is it the cheapest? The brightest? The most delicious? Yes, all those things. But the evaluation of them is subjective for most. A tomato from a local farmer you see on the street every weekend will look brighter and taste better and feel healthier to a lot of people than one coming across the world from Peru. Regardless of the truth or economics of scale. Also why is it a zero sum game? If some consumers choose to spend more to support local producers, is that not just a form of local subsidy which rebalances the wealth slightly from consumers to local producers? *Actually iPhones and Tesla are also emotional decisions. For some people an Android or a Chevy Volt are better decisions for factors beyond financial yet for emotional reasons they want the entire package that comes with the top brands.