Trade creation and trade diversion Suppose that with free trade, the cost to the United States of importing a backpack from Mexico is $10.00, and the cost of importing a backpack from China is $9.00. A backpack produced in the United States costs $14.00. Suppose further that before NAFTA, the United States maintained a tariff of 20% against all backpack imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff against imports from China remains in effect. Assume that the tariff does not affect the world price of backpacks. In the following table, indicate which country the United States imported backpacks from before NAFTA. Then indicate which country the United States imported backpacks from under NAFTA. Check all that apply. (Note: Leave the row blank if the United States doesn't import from either country.)