Final answer:
The statement is False. Both large and small firms can benefit from participating in the global market by gaining access to new markets, diversifying revenue streams, and taking advantage of economies of scale.
Step-by-step explanation:
The statement that many firms do not participate in the global market because their managers believe that international marketing should only be carried out by large multinational corporations is False.
In reality, both large and small firms can benefit from participating in the global market. International trade offers various advantages such as gaining access to new markets and customers, diversifying revenue streams, and taking advantage of economies of scale. In fact, many successful smaller economies have actively participated in global trade and achieved a high standard of living.
For example, Japan, the East Asian Tiger economies, China, and India have all experienced economic success by selling their products in global markets. Additionally, European economies thrive with high levels of trade, and the North American Free Trade Agreement (NAFTA) has reduced trade barriers between the United States, Canada, and Mexico.