1. Suppose HOME has an import tariff on both the ROW and on FOREIGN.Indicate in the figure above HOME's imports, FOREIGN's exports to HOME, and any FOREIGN exports to the ROW.
2. Now suppose HOME removes the tariff on FOREIGN goods only so that there is free trade between HOME and FOREIGN but still imposes import tariffs on ROW.Is Home better off with this FTA?Explain.Relate to the concept of trade creation and diversion

FOREIGN EXCESS SUPPLY A PRICE in HOME with TARIFF B E H C F K G PRICE in ROW HOME EXCESS DEMAND