Question 1 The standard strategic trade policy story treats protectionism between countries as a Prisoner's dilemma. In the case of two similar sized economies with similar relionces on trade, this treatment seems reasonable. In the case of two dissimilarly sized economies, however, this treatment may not be appropriate...or at least, the two counties are not similarly disadvantaged by a trade war. The United 5tates' economy is roughly twenty times as large as the Mexican economy, in terms of Gross Domestic Product (GDP). Consider that the United States and Mexico are considering whether to impose tariffs on each other''s exports. The resulting payoffs from each possible outcome (relative to the \"no tariffs\" baseline) are given as: * If both countries impose a tariff, Mexico receives a payoff of -510 hillion, and the United States receives a payoff of -55 billion * |f the United States imposes a tariff, but Mexico does not impose a tariff, Mexico receives a payoff of -525 billion, and the United 5tates receives a payoff of 53 billion. * |f Mexico imposes a tariff, but the United States does not impose a tariff, Mexico receives a payoff of 51 billion, and the United States receives a payoff of -518 hillion. s |f neither country imposes a tariff, the payoff to both countries is $0. Part (i): Complete the normal form game below using the payoffs information described above. Mexico Impose Tariff Do Mot Impose Tariff Impose Tariff Do Not Impose Tariff Part {ii): Identify the Nash Equilibrium of the game that you have constructed in Part (j). Part (iii): |s this game an example of the Prisoner's Dilemma? Explain why or why not