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Suppose that the government of Norway decides for the country to become self-sufficient in producing pineapples and even wants to export them. In order to accomplish this goal, a large tax incentive is granted to companies that invest in pineapple production. In addition, pineapple farmers are supported by an export subsidy. Soon, the Norway industry is competitive and able to sell pineapples at the lowest price. Does Norway have a comparative advantage? Why, or why not? What are the consequences for the overall economy?

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