Advertisement as a service

Although the average citizen is usually annoyed by all the advertisements printed in newspapers and magazines and the commercials broadcast on TV, the impact of the whole advertising industry on a single person is immense and plays a very important role in our lives. Advertising absorbs vast sums of money but it is useful to the community. What are the functions of advertisements? The first one to mention is to inform. A lot of the information people have about household devices, cars, building materials, electronic equipment, cosmetics, detergents and food is largely derived from the advertisements they read. Advertisements introduce them to new products or remind them of the existing ones. The second function is to sell. The products are shown from the best point of view and the potential buyer, on having entered the store, unconsciously chooses the advertised products. One buys this washing powder or this chewing gum, because the colorful TV commercials convince him of the best qualities of the product. Even cigarettes or sweets or alcohol are associated with the good values of human life such as joy, freedom, love and happiness, and just those associations make a person choose the advertised products. The aim of a good advertisement is to create a consumer demand to buy the advertised product or service. Children are good example as they usually want the particular kind of chocolate or toy or chewing-gum. Being naive they cannot evaluate objectively what is truthful and what is exaggerated and select the really good products unless they buy the goods and check for themselves. Thirdly, since the majority of advertisements are printed in our press we pay less for newspapers and magazines, also TV in most countries in cheap. The public advertising seen on street hoardings, railway stations and buildings makes people's life more joyful. Moreover, all those small ads in the press concerning "employment", "education" and "For sale and wanted" columns, help ordinary people to find a better job or a better employee, to sell or to buy their second-hand things and find services, or learn about educational facilities, social events such as, concerts, theatre plays, football matches, and to announce births, marriages and deaths. Thus despite our dissatisfaction when being bombarded by all the advertisers' information we must admit that they do perform a useful service to society, and advertisements are an essential part of our everyday life.

I. Read & translate the text. Find and write out expressions from the text.

II. Write sentences with vocabulary. Learn the vocabulary.

III. What do you think about advertisement as a service? Do you agree with the author’s opinion?

IV. Advertise one of the products which you like most of all. (Do it in groups).

Globalization

First of all, I'd like to mention some global companies: Microsoft, Coca-Cola, Marlboro, IBM, McDonald's and Intel, the full list of which we can find in the Forbes magazine. Such big companies, as Nestle or Pepsi have lots of subsidiaries all over the world, and such company as Microsoft - only local support centers, but the "brain center" is in Redmond, but all of them try to enter new markets using local partners and resellers. As for good and bad points of global companies, I can mention that all companies that I know try to increase the quality of their products, as they want to be the leaders in competition. Moreover, every company is always willing to hear the customer's opinion about its products, to receive some suggestions, how to improve the product. Some people can say that they've opened new world thanks to globalization and, particularly, watching "soap operas". What's more, global companies try to adopt their products to the traditional way if using them. On the other hand, globalization hurts the local government's ability to deal with wages and taxes. Another bad point is that local factories, which are disappearing every day, use more clean methods of production, as it's not necessary to transfer production on long distances, for example. And now I want to quote Valentine Matvienko, who took part in the work of Third World Commission of Social Aspects of Globalization on October, 15th in Geneva. She said that the positive side of globalization is that qualified workers can migrate to other countries and get a well-paid job. At the same time, she said Russia doesn't want to be out of the border of the world processes. She also told that some problems of globalization, for example, Russian producers are not ready to rival fight. The will of many foreign companies to weaken our economy in order to put local producers away from the rival market was also mentioned. Vice-minister told that we should save our local culture when entering the global economy, and I fully agree with this.

I. Read & translate the text. Find and write out expressions from the text.

II. Write sentences with vocabulary. Learn the vocabulary.

III. What is Globalization? How do you understand this process?

IV. Find out processes of Globalization in Economic sphere.

Create a BRAND. Make a project of your own brand in groups, use all previous texts. Prepare a presentation of your brand.

Unit2

The Law of Supply & the Law of Demand.

History

The phrase "supply and demand" was first used by James Denham-Steuart in his Inquiry into the Principles of Political Economy, published in 1767. Adam Smith used the phrase in his 1776 book The Wealth of Nations, and David Ricardo titled one chapter of his 1817 work Principles of Political Economy and Taxation "On the Influence of Demand and Supply on Price".

In The Wealth of Nations, Smith generally assumed that the supply price was fixed but that its "merit" (value) would decrease as its "scarcity" increased, in effect what was later called the law of demand. Ricardo, in Principles of Political Economy and Taxation, more rigorously laid down the idea of the assumptions that were used to build his ideas of supply and demand. Antoine Augustin Cournot first developed a mathematical model of supply and demand in his 1838 Researches on the Mathematical Principles of the Theory of Wealth.

During the late 19th century the marginalist school of thought emerged. This field mainly was started by Stanley Jevons, Carl Menger, and Léon Walras. The key idea was that the price was set by the most expensive price, that is, the price at the margin. This was a substantial change from Adam Smith's thoughts on determining the supply price.

In his 1870 essay "On the Graphical Representation of Supply and Demand", Fleeming Jenkin drew for the first time the popular graphic of supply and demand which, through Marshall, eventually would turn into the most famous graphic in economics.

The model was further developed and popularized by Alfred Marshall in the 1890 textbook Principles of Economics. Along with Léon Walras, Marshall looked at the equilibrium point where the two curves crossed. They also began looking at the effect of markets on each other.

In economics, supply and demand describes market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in a market. This model is fundamental in microeconomic analysis, and is used as a foundation for other economic models and theories. It predicts that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The model incorporates other factors changing equilibrium as a shift of demand and/or supply.