Norway is a minor European power next to Sweden to the East and Finland in the far North.They start out with two divisions of Infantry and a Medium sized navy consisting of Two Heavy Cruisers, Two Destroyers, and Two Submarine Flotillas. They have no Air units, and a small IC base (16 or so). They have very few commanders at first and the two divisions are attached to Theater HQ.
To resist German invasion in 1940, you should build as many infantry divisions as you can, consisting of three or four brigades, Militia works, but not nearly as well. Use these Divisions to Garrison your ports, as Germany isn't inclined to make costly assaults on defended ports. You should take "Prepare for War" immediately, as it will lower your neutrality to make you able to take more favorable laws.Small investments to your Navy should be made, like licence-producing Destroyers, Light Cruisers, or Submarines. With your Navy based in Trondheim in central Norway, you should defend your southern coast, not that it would make a difference if Germany REALLY wanted through. You should keep an eye on this fleet off the southern coast as Germany will bomb it to death with Nav. Bombers if it can. Submarines should be based in Narvik, and not used, as that will get them sunk. You might want to build a Transport Flotilla if you are inexperienced, keeping it in Narvik away from air raids (to evacuate your troops later).
Should Germany land, retreat and set a UK objective in Oslo, retreating to around Trondheim, you should evacute your Submaring Force to the UK at this point, as well as the divisions in Narvik and Kirkennes to a port of your choice, this will become "Little Norway" (Wikipedia page for "Little Norway" Here ). You should also evacuate the main body of the Navy to the UK, leaving one transport to shuttle troops out of northern Norway. You should then shuttle troops to Scapa Flow (as it is closer, they can walk from there). As soon as Norway falls you should rebase your Transport to Canada (it will be VERY important later).
After The FallEdit
It is bound to happen eventually, Norway has fallen, You should've been able to have rescued at least two divisions, as soon as the surrender happens, cancel everything and build resistance. Once most of Norway has resistance in it, use the "organized revolt" button, and combine partisan brigades into divisions, the more the better.
As your partisans rebel, use the Navy and your submarines to blockade off Kristansund, the Surface ships to block troop transport ships, the submarines to raid supply convoys.
After Norway is "Liberated" keep using partisan divisions as Militia to ward off further invasion
This covers what you do that isn't military.
DO NOT join the Allies until Germany declares on you. It is more efficient to license produce light ships and, if you REALLY want them, waste you IC on Allied armor. you really don't need to align towards Allies, and you should not risk losing your meager military in wars on other little nations. trade is very important, and to play Norway you must be good at it, have as few trading partners as possible so that the relations bonus and the price drop as a result of the high relations between you, the USA or the USSR are partners due to their relative abundance of resources and decent starting relations with the USA (75). The Soviets make good trading partners even without good relations as there is no risk of the convoy being sunk, as unlike the USA they aren't overseas and don't need a convoy to trade with them.