Question: Table 17-4 Consider trade relations between Canada and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are

 Table 17-4 Consider trade relations between Canada and Mexico. Assume that

Table 17-4 Consider trade relations between Canada and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows: Mexico High Tariffs Low Tariffs Canada High Tariffs Canada trade value = $65 Canada trade value = $140 Mexico trade value = $75 Mexico trade value = $5 Low Tariffs Canada trade value = $35 Canada trade value = $130 Mexico trade value = $285 Mexico trade value = $275 6. Refer to Table 17-4. Pursuing its own best interests, when will Mexico impose trade sanctions or high tariffs against Canadian firms? a. only if Canada plays a high tariff strategy with Mexico b. only if Canada plays a low tariff strategy with Mexico c. regardless of the strategy that Canada plays d. under no circumstances

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