The study looks at how trade preferences and subsidies affect exports from developing countries like Bangladesh. By using a model that considers differences between companies, the researchers found that giving preferences to one country can boost exports to others. For example, when the EU helps Bangladesh's apparel industry, it leads to more profits, new companies entering the market, and increased exports to the US. The study also shows that reducing certain costs can have different effects on exports, with subsidies for production costs being more effective than entry costs. In fact, a $1.5 million subsidy for production costs can increase exports by$25 for every dollar spent.