It can be shown that the Nash equilibrium would indicate that without any agreements, the best outcome for each large nation would be to:

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Without any agreements, each large nation would likely impose a tariff as a means of protecting their domestic industries from foreign competition. This is known as the "prisoners' dilemma" in game theory, where each player's best strategy (imposing a tariff) leads to a suboptimal outcome for both players. However, if both players were to cooperate and not impose tariffs, they would both achieve a better outcome. This is the basis for trade agreements and international cooperation in trade policy.

It Can Be Shown That the Nash Equilibrium Would Indicate