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28-10-2020
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Refer to the scenario above. If the terms of trade are 1.5 kilos of cloudberries for a kilo of salted cod, the terms of trade are ________

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Tundexi Tundexi

29-10-2020

Answer:

B. Advantageous for both Norway and Sweden.

Explanation:

The full question is missing but have been attached as picture below.

Options Includes "A. advantageous for Norway but not for Sweden, B. advantageous for both Norway and Sweden, C. advantageous for Sweden but not for Norway, D. not advantageous for either Norway or Sweden"

Norway's opportunity cost of salted cod is 1 cloud berries and 2 cloud berries for Sweden. Since the international price lies between Norway's and Sweden's opportunity cost, it is beneficial for both of them.

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