Question: Hi, could someone answer this question and explain please? Thanks Ki 4 Consider trade relations bemreen the United States and Mexico. Assume that the leaders

Hi, could someone answer this question and explain please?

Thanks

Hi, could someone answer this question and explain please? Thanks \"Ki 4

\"Ki 4 Consider trade relations bemreen the United States and Mexico. Assume that the leaders of the two coun- tries believe the payoffs to alternative trade policies are as follows: a. What is the dominant strategy for the United - States? For Mexico? Explain. b. Dene Nash equilibrium. What is the Nash equilib- rium for trade policy? c. In 1993, the US. Congress ratied the North American Free Trade Agreement, in which the United States and Mexico agreed to reduce trade barriers simultaneously. Do the perceived payos shown here justify this approach to trade policy? Explain. d. Based on your understanding of the gains 10m trade (discussed in (Simple-rs 3 and 9), do you think that these payoffs actually reect a nation's welfaxe under the (cur possible outcomes

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