What happens when a exponent is outside the parentheses?

That means the answer you get in the parenthases you do youre operation with the exponent

Simplify inside the parentheses and then put it to the power of the exponent.
This is just following PEMDAS. (Parentheses, Exponents, Multiplication, Division, Addition, Subtraction.)

So if I had (2+3)^2, you'd add 2 and 3 (5), and square it. Our result? 25.