Over the last 30 years, developing countries have assumed prominent roles in the global economy, moving up value chains, increasing exports, and augmenting outward investment. One of the main destinations of these exports and investment is Europe. As a result, emerging country multinational enterprises (EMNEs) are being exposed more than ever to new norms and practices, and new levels of exposure and potential scrutiny. What effect will this have on labor rights in developing countries such as Brazil? In this paper, we propose that as Brazilian MNEs increase their exports and investment to Europe, collective agreements will become more generous and concessional and strikes less frequent, as the MNEs try to avoid scandals in host markets and become exposed to European norms and practices. We test our conjectures using novel data measuring collective action outcomes in Brazil. We also introduce a novel method for measuring outward investment linkages which, along with subnational data on exports, is matched to our collective action data by city, economic sector, and year for the period 1992-2018, incorporating Brazil's major modern globalizing episodes. Our results confirm our hypotheses, that these economic linkages function to diffuse better collective labor standards. In addition, for the first time, we can test and confirm how the California Effect in labor standards impacts firm decision-making using direct (rather than indirect) measures of collective labor standards.