What happens when Sweden’s currency loses value compared to Norway’s currency?

Show Answers

Norwegian exports become costlier for people living in NorwayNorwegian export products become less expensive for Swedish consumersSwedish exports become more affordable for Norwegian buyersSwedish export items become cheaper for Swedish residents

Explanation

When Sweden’s currency depreciates relative to Norway’s, Norwegian exports do not become cheaper for Norwegians themselves; rather, the cost of Norwegian goods within Norway remains the same or may increase due to inflation. The correct effect is that Norwegian exports become more expensive for those in Norway.