Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create great deal of air pollution. The U.S. government, concerned about the quality of air, would like to see fewer Russian automobiles and more cleaner-running American automobiles on the road.

1. Explain why imposing a tariff is a second-best policy to employ in this case and what policy choice would be more efficient if:

i)US carries out its own solution

ii)the two countries governments cooperate.