The study looked at how different companies in China react to changes in exchange rates. They found that firms that struggle to get money are more affected by exchange rate changes than those with easier access to funds. This means that when the value of the Chinese currency changes, financially constrained companies see bigger shifts in their exports compared to financially stable companies. The study also discovered that financially constrained firms don't change their prices as much when the exchange rate changes, compared to financially stable firms. This difference in how companies react to exchange rate changes remains consistent even when considering other factors like how much they import, how productive they are, how flexible their prices are, and how big they are.