Advertising

The modern world depends on advertising. In the world of advertising, selling products is the most important goal. As companies becoming more global, they are looking for new ways to sell their products all over the world.

Some people think that to advertise means to let the customers know about the product. Maybe it was so many years ago. Today, in times of high competition, a function of advertising is much more complex. You should not only let people know, you should make them buy. In different forms, in different words you should convince everybody that your product is the best. Since 1960s advertising began to create a product image instead of presenting the product benefit, advertising was gradually transformed into a science. It became a mixture of management, marketing and psychology.

The products are shown from the best side – even cigarettes, sweets or alcohol are associated with the good values of human life such as joy, freedom, love and happiness.

Because corporations are opening new markets and selling their products in many countries of the world, they are also advertising their goods and services there. These measures will bring great profits, but at the same time the problems of language and culture in global advertising become very serious. For example, Chevrolet tried to promote Chevy Nova in Latin America. In English, the word nova means a star. But in Spanish, it means "doesn't go". Would you buy a car with this name? In Latin America Marlboro's advertisement doesn't work, because cowboys are considered to be the poorest men there, who don't have enough money to buy good cigarettes.

Tо avoid these problems of translation, most advertising firms are beginning to write completely new ads, considering different styles of communication in different countries, traditions and laws.

Globalization of World Economy

Globalization is the increasing internationalization of ideas, science, communication and technology. It also has three interdependent dimensions: socioeconomic, scientific and cultural.

Economic globalization is the process of integration of markets, great changes in trade and finance and the establishment of the global economy. The main aim of economic globalization is to change the world into one (global) market which has the same characteristics in different countries. Globalization should lead to a free mobility of capital and privatization. Besides, globalization means wide advertising of new consumer products all over the world, low taxes for producers both domestic and foreign and similar life-styles for people of different nationalities.

First steps towards globalization in Europe were made by the establishment of the Common Market in 1993 and the introduction of the "euro" as the new single currency for Europe on January 1, 1999.

Some countries of Central and Eastern Europe have recently joined the European Union, such as Lithuania and Poland while others are planning to do it. However, to transform planned economies into really mixed economies countries of Eastern Europe must increase the levels of productivity and competitiveness of their economies. Special adjustments should be made in agriculture, tax system and in the system of social security.Globalization of business means that a company wants to become a part of the global economy and it is going to establish its subsidiaries in foreign markets. However, a company will have to adjust its products or services to the consumers' wants and needs in a foreign country. Nowadays any company may do e-business using the Internet services.