The article looks at how the order of actions by companies affects efficiency in a market with both local and foreign firms. When foreign ownership is low, new local companies entering the market can lower consumer welfare but increase overall welfare. The existing nationalized firm makes more profit when new companies enter. Regardless of foreign ownership, there is always too much competition when a public firm leads the way. This happens because the public firm and the business-stealing effect work together. These findings are important for making decisions about industries and opening up markets.