Developed countries that buy exports from developing countries often share technology with the exporting firms. A model was created to see how this technology spreads to other firms in developing countries and how new firms entering the market affects profits. Surprisingly, when technology spreads and new firms enter the market, profits can increase for both the buyer and the initial supplier. This is because competition increases both upstream and downstream, making both firms more competitive. Some competition is actually good for firms as long as it pushes both the buyer and supplier to improve.