Norway is one of the world’s most expensive countries. Supermarkets in the south however trying to lure local customers by undercutting rivals on the price of nappies inadvertently made it profitable enough for residents of nearby countries to start trading in them.
Norwegian diapers cost as little as 30 crowns for 50, less than half of the prevailing price in Lithuania. Coincidentally, the internet is heaving with Lithuanian sellers advertising Norwegian nappies.
Ricardo proved right again, that iron law of one price.