Trade agreements encourage countries to reduce tariffs (taxes on imports) so that goods are able to flow across international boundaries with fewer restrictions. The trade game below is played only once, and each payoff represents a monetary gain to one of the untries, relative to the scenario where the countries do not trade at all. Mexico Low tariffs High tariffs 100 billion gain 150 billion gain Low tariffs 100 billion gain $20 billion gain United States $20 billion gain $50 billion gain High tariffs 150 billion gain $50 billion gain What is the dominant strategy for the United States? Choose one:
A. Cooperate on tariffs with Mexico.
B. There is no dominant strategy for the United States.
C. Choose high tariffs
D. Choose low tariffs.