Exporting firms drive up prices and worker bargaining power, impacting market efficiency.
The article explores how different types of companies doing business internationally affect product and labor markets. Companies that export tend to have more power to set prices and negotiate wages, but may not always take advantage of this. On the other hand, companies with foreign subsidiaries help reduce distortions in prices and wages. The study shows that the way companies operate globally can impact how they interact with markets and influence their productivity.