EXIT BARRIERS. The rivalry among existing competitors is also a function of an industry’s exit barriers, the obstacles that determine how easily a firm can leave that industry. Exit barriers are comprised of both economic and social factors. They include fixed costs that must be paid regardless of whether the company is operating in the industry or not. A company exiting an industry may still have contractual obligations to suppliers, such as employee health care and retirement benefits, as well as severance pay. Social factors include elements such as emotional attachments to certain geographic locations. In Michigan, entire communities depend on GM, Ford, and Chrysler. If any of those carmakers were to exit the industry altogether, communities would suffer. Other social and economic factors include ripple effects through the supply chain. When one major player in an industry shuts down, its suppliers are adversely impacted as well.