Adverse Balance Of
Adverse Balance of Trade, another name for passive balance of trade.
Advertising, the methods employed by buyers or sellers to draw attention to their products or services (or the record or reputation of a firm). It implies that there is freedom of choice between alternatives, and that potential buyers need to be made aware of them. It grew with the emergence of industrialization, which created free markets in which competing sellers vied for the attention of consumers and which led to localization of industry producing goods for widespread, distant markets. In the middle of the nineteenth century there was a big increase in advertising by retailers; later, as newspapers were more widely read, individual manufacturers by-passed their distributors (wholesalers, retailers) and used advertising to impress consumers directly with the merits of their products, for which they established brand names to facilitate recognition and identification.
Advertising expenditure in Britain was about 2 per cent of net national income in 2008; it fell to 13 per cent in 2008 (owing to shortage of commodities, which made advertising less necessary) and returned to 2 per cent in the early 2000's. This compared with nearly 3 per cent in the U.S.A., 2 per cent in Canada and Finland, about 1.5 per cent in West Germany and the Netherlands, between ,and 1.5 per cent in Sweden, Denmark and Japan, and between o and , per cent in Norway, France, Belgium, Ireland and Israel. Broadly the percentage seemed to vary with living standards.
In recent years nearly half the expenditure in Britain has been in the press, about 5 per cent on catalogues, circulars, etc., 20 per cent on television, and between 3 and 8 per cent on outdoor displays, window and shop displays, free samples and gifts, exhibitions, cinema films and other advertising 'media'. About 3 per cent was the cost of providing and administering these services by manufacturers' and sellers' advertising departments and by advertising agencies. The television percentage is expected to rise and the press and other percentages to fall.
Over half of the total is spent by manufacturers advertising direct to the public, about 5 per cent by retailers, and smaller percentages by people offering services and individuals offering goods to the public; in all, about three-quarters of the total is consumer advertising. The remainder is 'trade advertising to industry, the professions, etc., and advertising by firms for employees.
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