The volume of export activity in the world economy has increased as exporting has become easier, especially due to the gradual decline in trade barriers under the umbrella of GATT and now the WTO. Regional economic agreements such as the European Union and the North American Free Trade Agreement have also significantly increased export opportunities. Even though export activity in the world economy has increased, exporting remains a challenge for many firms. Smaller enterprises can find the process intimidating due to a host of issues ranging from mechanics of importing and exporting to dealing with countertrade. There are several promises

and pitfalls to exporting.

Listed below are elements related to exporting. Determine if the statement is true or false

1Time: Many novice exporters underestimate the time and expertise needed to cultivate business in foreign countries

2Exporters: Exports account for a large percentage of U. S. firm’s sales

3Revenue and profits: Large revenue and profits opportunities abound in foreign markets for most firms in most of the industries

4Face to face negotiations: Many foreign customers do not necessarily require face to face negotiation when conducting business

5Economies of scale: By expanding the size of the market, exporting can be enable firms to reach economies of scale

6Small firms: Many small and medium sized firms are reactive toward exporting