Table 17-4 Consider Trade Relations Between Canada and Germany. Assume That the Assume

Multiple Choice

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


-Refer to Table 17-4.Assume that trade negotiators meet to discuss trade policy between Canada and Germany.If neither party to the negotiation is able to trust the other party,then how will they choose their strategies

A) Each should assume that the other will choose a strategy that optimizes total value of the trade relationship.
B) The Nash equilibrium will provide the largest possible gains to each party.
C) Mexican negotiators should assume that Canadian negotiators will implement a policy that is in the mutual best interest of both countries.
D) Each should follow their dominant strategy.