Question: Two countries are considering whether to impose tariffs on each other's imports as part of a trade war. The increase in each country's GDP (measured

Two countries are considering whether to impose tariffs on each other's imports as part of a "trade war." The increase in each country's GDP (measured in billions of dollars) for different combinations of tariffs are shown in the table. If initially Country 1 and Country 2 are not allowed to cooperate, they would arrive at a decision. Will this decision change if the two countries are then allowed to cooperate?

Type Y for Yes or N for No.

Country 2

No Tariff (N)

Low Tariff (L)

High Tariff (H)

No Tariff (N)

75, 75

20, 100

15, 140

Country 1

Low Tariff (L)

100, 20

50, 50

20, 100

High Tariff (H)

140, 15

100, 20

25, 25

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