If norway decided to reduce import duties for germany, which allowed germany to export more cars to norway at a lower cost, it would create a stronger tie between these two countries. in this situation, norway is granting germany trading status.

most favored nation

Explanation:

Most favored trading status is given to a country by a trading partner when it decides to promote trade relations with such country.

The country that received this status enjoys good trade terms like lower import duties and fewer trade barriers, thereby lowering their export cost. In this case, Noway has granted Germany most favored nation as it reduced import duty with the intention to develop strong ties between the two countries.

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