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5. Norway has a tremendous comparative advantage over Colombia in the production of computer software while Colombia has an even bigger advantage in coffee. This

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5. Norway has a tremendous comparative advantage over Colombia in the production of computer software while Colombia has an even bigger advantage in coffee. This means that if NonNay and Colombia want to promote efcient economic policies: 5".\" . Each government should impose restrictive tariffs in order to protect jobs and promote infant industry development in software and coffee. Colombia should produce more coffee than its citizens can consume and sell the excess to Norway while NonNay should eliminate all tariffs on coffee. Each nation should seek reciprocal trade agreements in these two industries. Colombia should attempt to become more self-reliant in the production of computer software regardless of the opportunity cost of doing so. B and C only

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