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Refer to the figure above. The firm's return on equity is
Foreign Competition
The presence of competitors from other countries in a domestic market, highlighting the global nature of the market and challenges for local firms.
Tariffs
Taxes imposed on imported or, less commonly, exported goods, used by governments to regulate trade, protect domestic industries, or generate revenue.
Importing Products
The business activity of bringing goods or services into one country from another to sell them.
Domestic Markets
The supply and demand of goods and services within a single country.
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