Management: Our position relative to our main competitor, which is located in the country of Patrio, has improved this year. The Patrian government has placed steep tariffs on imported steel, forcing our competitor to buy steel from sources inside the country at a much higher price. We can conclude that their costs have increased greatly this year, to levels much higher than ours, and they will be forced to deplete their cash reserves, leaving them with less cash in reserve than we will have to spend on marketing next year.
Which of the following conclusions is best supported by these comments about the management about its company and its competitor in Patrio?