This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich … organized in a series of stylized facts, which suggest that although the pandemic had an immediate adverse impact on most firms …, the globally engaged ones are recovering faster, possibly due to their higher capabilities. Among globally engaged firms …

immediately following the initial COVID-19 shock. While US firms saw a reduction in imports due to Covid-related trade disruptions …

. It exploits quasi-experimental variation in firms' foreign demand resulting from the global financial crisis, using … data from Ecuador, analysis finds that firms do not adjust workforce composition, but they permanently reduce capital which …