Assume that Trinbago is a small country that produces wine and motor vehicles, where motor  vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland.  a) Given that Vincyland is a small country, examine the partial equilibrium welfare effects  associated with imposing a tariff on their import good given that the prediction of the  imported good yields a positive externality. b) Should a subsidy have given a more desirable solution. Please explain

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Assume that Trinbago is a small country that produces wine and motor vehicles, where motor 
vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. 

a) Given that Vincyland is a small country, examine the partial equilibrium welfare effects 
associated with imposing a tariff on their import good given that the prediction of the 
imported good yields a positive externality.

b) Should a subsidy have given a more desirable solution. Please explain 

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