Firms' hidden costs could manipulate trade policies, warn experts
The article discusses how trade and policies are affected when some companies have more information about their costs and demand than others. It looks at ways firms can reveal their hidden information, like through screening or signaling. In screening, the government creates a system to make firms show their true costs. In signaling, firms take action to show if they are high or low cost, like spending more on research or improving their exporting abilities.