Trade liberalization widens wage inequality and benefits large firms, hurting small businesses.
The article explores how trade affects different types of companies in the market. It looks at how big companies and small companies interact when trading internationally. The study shows that when a country opens up to trade, big companies tend to produce more and hire better workers, which can hurt small companies. However, skilled workers at small companies may benefit by getting jobs at big companies. The impact of trade on a country's well-being depends on the quality of its workers and the number of big companies in the market.