Work on the following question, which is meant to trade creation and trade diversion.

2. The following three countries of the world produce and consume digital cameras. The autarky price of digital cameras for the three is given below.

Country                                                       Autarky price of steel

Belgium (small country)                               $12

U.S.                                                                 $2

Germany                                                        $4

Using relevant graphs, compare the outcomes of Belgium forming a Free Trade Area (FTA) with the U.S. versus with Germany. Assume a per unit tariff of $1.