To practice my German, I often talk with my wife's grandmother about what went on back then. Food was most certainly rationed and life did not go on as normal. There were plenty of shortages, etc. The people were rather frightened. You can see the German border from here as the river in this valley flows straight into the Rhine.

In that situation, a better question have been: what options did Switzerland even have? They had to remain "neutral" and reach tacit agreements with the Axis powers in my opinion if they did not want to be overrun. Let's not forget, Sweden remained neutral as well.