This question is related to the economics of international trade.

Let's assume that Canada and the United States are the only two countries in the world and that they are both in a state ofautarchy (there is no trade between them).

1) What is the impact of the complete absence of trade between them, in terms of their economies, outputs, consumption, and consumer standard of living?

2) What changes do we expect if the two countries decide to adopt a free trade agreement with each other?

If you explain it in detail, I would be grateful.