Question

question 2 (1 point)
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:
refer to table 17 - 4. pursuing its own best interests, when will mexico impose trade sanctions or high tariffs against canadian firms?
only if canada plays a low tariff strategy with mexico
only if canada plays a high tariff strategy with mexico
regardless of the strategy that canada plays
under no circumstances

Explanation:

When Canada chooses high tariffs, Mexico's payoff is $75$ (high tariffs) vs $5$ (low tariffs). When Canada chooses low tariffs, Mexico's payoff is $285$ (high tariffs) vs $275$ (low tariffs). In both cases (regardless of Canada's strategy), Mexico gets a higher payoff with high tariffs.

Answer:

Regardless of the strategy that Canada plays