The less restrictive trade policies in place encourage more competitive pricing behavior in domestic markets and have a negative effect on the profit rates of domestic producers (Espinosa & Espinosa 2014, p. 343). Foreign competition limits the ability of domestic firms to command above-average prices for their products. Therefore, profit rates are low in markets where foreign competition is more evident, and when barriers to entry are low, the threat of foreign competition is greater (Espinosa & Espinosa 2014, p..