. We calibrate such a model to China’s trade with the rest of the world and explore two country tariff games using 2005 …

) existence can also be an issue. Here we use numerical simulation methods. We first consider world with service trade autarky in … removing period by period budget constraints for domestic consumers. In such a world, if nonzero tariffs apply to spatial trade … ongoing tariff negotiations. We then expand the model to capture a more complex world where costly intermediation services can …