Essay B.Please answer the following items:

(i)(10 points) Explain using graphical analysis the terms-of-trade argument against free trade;

(ii)(5 points) Based on your answer in item (i), please comment on the following statement using the evidence discussed in class about the effects of the 2018 waves of tariffs applied by the U.S. government:

President Trump via twitter on 11/29/2018: "Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don't want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!"

(iii)(5 points) Comment on whether the terms-of-trade argument against free trade necessarily applies under the presence of retaliatory tariffs applied by trade partners;