What kind of processing does "export" do?  (i.e., why the huge size reduction of the .mov?)

I have a .mov video I imported into imovie 11.  All I did was add a title bar at the beginning.  The original video size was 2.35GB.  The exported .mov is 985MB.  Why the size reduction?  What processing happens on export?  Does it affect quality.  It was originally 1080p, 24 fps, .mov file from my video camera.

iMovie converted your file to a "more compressed" codec on export.  Most likely when iMovie imported your video file, it converted your video file to AIC, a native codec that iMovie works with comfortably on high definition video (before importing into iMovie, your video file could be also quite small).  AIC file takes a lot of space.  Exported video files are for viewing, not for editing, so by default iMovie compresses the file to reduce the size.  In fact you can change the default settings on export in iMovie (in menu "Share", "Export using Quicktime...").
Yes it affects quality, but usually you won't notice the difference.  It depends on your viewing facility.  Unless you have a high-end projector with 150' high-end screen, or a great video card with Eizo monitor, don't bother.  In any case, you can always adjust the iMovie export settings to satisfy your eyes.

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