The study deals with Internet and the impact it has had on international marketing of small and medium sized firms. It consists of the following three parts: Internet and international marketing from marketplace to marketspace;Internet and internationalization of small and medium sized firms; Web site use and perception of export barriers among Swedish SMEs. While the first two parts discuss theoretical aspects and overview past research, part three consists of an empirical investigation of a sample of Swedish SMEs where the following three research questions are addressed: How do Web-owners and non Web-owners compare with respect to their perception of barriers/obstacles to export marketing? How do SMEs that have Web site view advantages of the Internet in terms of its contribution to firm's international activities? What areas of SME export marketing is most benefitted by the Web? The findings indicate that Web site owners are less affected by the organizational, psychological, operational and product/market barriers of international marketing. They regard Internet valuable to create good company image and reach foreign customers. Furthermore, they consider communication as the main area where Internet contributes to their international business activity.