5. Refer to Figure 6-A-2 in your Study Guide (page 25). It shows the payoff matrix for a tariff game among large countries.

Figure 6-A-2 Foreign No tariff Tariff e - (b + ) =0 Gain No tariff 0 Large loss Home -(8 +0) =0 - (b + d+ f) =0 Large loss Loss Tariff e- (b+ d)>0 - (6 +d +f) =0 Gain LOSS