...Economics of Olympics ECON1001D – Macroeconomics Yurii Hrabovetsky 2015-12-11 Jason Dean The economics of the Olympics revolve around the prospect of high economic growth within the country post-Olympic years. This is often found to be an utter lie. The majority of the time the host country is promised a great amount of profit but the truth is that they tend to lose a lot of money on it – most of which comes from tax revenues. “During the competition between communities for the right to host a future Olympic Games, politicians and proponents bring forth predictions touting the economic benefits to the region that ultimately wins the right to host the Games” (Philip Porter, 2008, Page 470). Many politicians believe this idea of the economic value of the Olympics. Most of the time it is found that these countries lose a majority of the money. “However, when the Games are over the host communities are often left with substantial debts and, as we demonstrate below, little or no noticeable benefits” (Porter, 2008, Page 470). The predictions that are made and the results of the Olympics are often found to be completely different. This mostly due to the use of the input-output models and the misinterpretation of the short term results without consideration for the long term effects. This report will focus on how the predictions are made, the issues with these predictions, and the effects after the Olympics have ended. One of the models used to predict the results...
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...feasible for the nation. In a country where inflation has hit the poor badly, where the infrastructure is ridiculous at places, economy is growing at less than 2% - hosting the World Cup was supposed to burn a hole into Brazil’s already tottered pockets, a hole as big as $15 billion. Vietnam’s $155 billion economy is recovering slowly and its annual growth is expected to be more than five percent in the next few years, the nation faces a plethora of issues which include a feeble infrastructure, a worrisome debt and an inefficient and corrupt state sector. To bear an additional cost of anything between $150 million - $500 million, is worth giving a second thought for an economy of that size and in that condition. We will look into the effects of few such extravaganzas on the economy of the host nations so that we can gauge...
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...extremely effectiveness difficult task unless firms discover the different ways to improve on efficiency and of their operations. Recruitment is the process of generating a pool of capable candidates applying to an organisation for employment (Gold, 2007). Applicants with experience and qualifications most closely related to job specifications may eventually be selected. Organisations become concerned when the cost of a mistake in recruitment is high. According to Armstrong (2006) the aim is to obtain, at a minimum cost, the number of suitable and qualified candidates to satisfy the needs of the organisation. The organisation attracts candidates by means of identifying, evaluating and using the most appropriate sources of applicants. El-Kot and Leat’s (2008) observation is that recruitment begins with advertising existing vacancies As already mentioned, this can be done internally or externally. In this instance the researcher was interested in external sources and processes as organisations in the Province are currently experiencing an undersupply of suitable candidates. Company policies related to the employment of relatives may influence its recruitment efforts. Currently more and more companies implement anti-nepotism policies that prevent the employment of close relatives, especially relevant to placement of candidates in the same departments or work groups (McMillan, 2006). Recruitment and selection is the process of attracting individuals on a timely basis, in sufficient...
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...‘‘The positive impacts of mega events are often exaggerated’. Mega events provide organisers with a unique opportunity to modify the international image of the host country. They also provide impressions of host countries to direct spectators, television viewers and additional indirect audiences. Mega events offer the opportunity to project a desired image of a host country going far beyond the event itself, enabling a country to communicate assets that can be attractive for tourists. Getz, (1998), p.242 defines mega events as “Planned occurrences of limited duration which have an extraordinary impact on the host area in terms of one or more of the following: tourist volumes; visitor expenditures; publicity leading to a heightened awareness and a more positive image; related infrastructural and organisational developments which substantially increase the destination’s capacity and attractiveness”. Although the notion of events has been known for a long time, it is their scale and strategic use in late modern society that make them appealing for host places, media, researchers, visitors and others. Especially in tourism, mega events have attracted considerable interest. Roche (1994:1) states that ‘mega events are short term events with long term consequences for the cities that stage them’. Most of the numerous studies which have already been conducted on the nature of tourism determinants, such as that of Solberg and Preuss (2006), have found that the hosting of mega events...
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...More Globalization To Solve Japan's Prolonged Economic Stagnation: 2020 Tokyo Olympic, Establishment of Foreign Companies and Cultural Reform/Cultural Ramification Before Japan was globalized it was secluded from the rest of the world for nearly two centuries from1603 to 1868. This time period was called the Tokugawa Period. Even though Japan closed its ports to foreign trade, it was self sustainable and independent. This self sustainable society was maintained through its unique producer-consumer relationship and the "reuse recycle" practice in commerce due to the island's limited resources. Repair merchants such as tinker, ceramics repairers and truss hoop repairers supported a society where nothing was thrown away but instead carefully repaired and reused until the products were truly un-amendable. For example, tinkers used special techniques and charcoal heat to weld holes in pots and kettles with other metals; ceramic repairers glue broken ceramic pieces together with sticky rice and applied heat; paper makers buy used papers and blend them to make a variety of paper from writing paper to toilet paper (Staff). The Tokugawa Period served as a model of a flourishing sustainable society to the Japanese. After Japan was introduced to globalization during the Second World War, the nation benefited from becoming a export driven economy, business policies such as the lifetime employment policy promoted the efficiency of the company, and the cultural influences on business management...
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...Economic Impact of Mega Sporting Events on Host countries Nitika Mangal Table of Contents Table of Contents 2 Chapter 1: Introduction 4 Chapter 2: Aim and Objectives 5 Chapter 3: Literature Review 6 Chapter 4: Analysis 1 - Economic Impact of Atlanta 1996 Olympics 9 Positive Impact 9 Negative Impact 10 Chapter 5: Analysis 2 - Economic Impact of Sydney 2000 Olympics 12 Positive Impact 12 Negative Impact 14 Chapter 6: Analysis 3 - Economic Impact of Sochi 2014 Winter Olympics 16 Positive Impact 16 Negative Impact 18 Chapter 7: Analysis 4 - Economic Impact of FIFA 2010 World Cup, SA 20 Positive Impact 20 Negative Impact 21 Chapter 8: Analysis 5 - Economic Impact of FIFA 2014 World Cup, Brazil 23 Positive Impact 23 Negative Impact 24 Chapter 9: Overall Critical Analysis of Mega Sporting Events 26 Olympics 26 FIFA World Cup 29 Chapter 10: Challenges in Calculating Economic Impact 31 Chapter 11: Conclusion 34 References 35 Chapter 1: Introduction Hosting a sporting event, and that too a mega-sporting event is considered to be a proud moment in the history of any country. It is hard to provide a clear and well defined meaning for the term mega-event, as its difference from a normal event is not just dependent on the number of actual participants. It needs the fulfillment of many different factors...
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... Executive summary Basketball is one of the major Olympic sports. And Olympic presentation of it should be as good as possible, as millions of people will watch the action from East London closely. They all want an extraordinary exhibition and performance, so the constructions of a top quality Basketball Arena, which will successfully host the games, require a lot of attitude. It is essential to understand that the arena must be a part of an Olympic vision and should address all the proposals and ideas which Olympic Delivery Authority (ODA) and London as a capital of Great Britain want to introduce during games and after them. It required a lot of effort, knowledge and an experience to achieve the overall goal in delivering basketball arena. In the end the project become one of the biggest of its type ever built for such an event. Several firms, agencies and organisations worked closely with each other to deliver a successful result on each stage of the project. Introduction The Basketball arena was a unique challenge. It was the first time a 12000 seat temporary arena with a span of almost 100 m had been built in UK. Because of the size, scale, complexity and the cost of the venue, it went through considerable scrutiny, deliberation and change throughout the course of 2006-2009. Location of Basketball arena was changed to the former site of the Fencing hall after Olympic and Paralympics Fencing and Paralympics Judo were moved to Excel venue in Docklands...
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...Case Study London 2012 and the Displacement Effect Case Study London 2012 and the Displacement Effect London 2012 and the Displacement Effect: Will British Tourism suffer during the Games? The impact of the greatest show on earth arriving on British shores can be quantified in many ways; in terms of its social, financial, environmental, economic and overall legacy impact. In terms of British tourism, much debate has arisen concerning the economic impact of the Games, and whether the Games will actually provide a positive or negative legacy for the sector. ECONOMIC IMPACT Economic impact can be defined as the measure of the spending and employment effects of a specific project. In the case of the London 2012 Games, the total economic impact can be considered to be the sum of direct, indirect, and induced impacts resulting from the Games. The direct impact of the Games includes the purchases of Games organisers in the preparation and execution of the Olympic and Paralympic Games. Indirect impacts are experienced by those companies and individuals who operate in the goods and service industries that supply the industries that receive expenditures by Games organisers. Induced impacts relate to the spending made by individuals who are employed either indirectly or directly by Games expenditures. The Cost of Hosting the Games The budget for the London 2012 Olympics currently stands at £9.35bn. This figure includes a £2.7bn contingency...
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...1988 Winter Olympics In 1988, Calgary hosted the first Olympic Winter Games held on Canadian soil. The Winter Olympic Games in Calgary represented an opportunity for Canada to showcase itself on the global level. Not only did the international media descend upon Calgary, showcasing their natural beauty and famous sights, but Canadian athletes were also cast under a spotlight, and their victories and losses were seen to be correlated with the success of the Games and the health and vitality of the Canadian nation by the Canadian public. Despite the Canadian team only winning 5 medals and place 12th in the rankings, the legacy of the ’88 Olympics continues to transform Canada and impact present day and future Olympic Games. . Canada has been a strong proponent of winter sports, but prior to 1988, no Canadian city had ever hosted the Winter Olympic Games. Calgary won the bid to host the ’88 Winter Olympics in 1981 defeating out Falun, Sweden, Cortina d'Ampezzo, and Italy. Calgary changed every single venue that they proposed to the IOC in their candidature. Many of the ski events were forced to be rescheduled due to the warm Chinook winds that gusted up to 60 miles per hour. The Canadians two greatest efforts in the Games came from men’s and female’s figure skating which resulted in 2 silver medals. In men’s figure skating Brian Orser of Canada was co-favourite with America’s Brian Boitano, it was the thought of home ice and the emotion it brought could give him the confidence...
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...An economic shock is an unexpected and unplanned event that has affects on an economy. These shocks can affect both supply and demand causing both positive and negative effects on an economy. The nature of the impact on the economy as well as five macroeconomic objects of these shocks will depend on the strength of an economy at the time, which will determine how well they can react and coup with these shocks. A demand side shock is an event that suddenly increases or decreases the demand for goods and services. In the event of major sports completion such as London 2012 could be referred to as mainly a shock to demand due to its effects on AD and its ability to boost growth in the economy. The London Olympics 2012 forced the government to use fiscal stimulus (government spending) in order to build infrastructure witch would be needed for the games e.g. stadiums and the Olympic village. The Olympics also encouraged firms to invest due to the fact that they would be able to advertise heavily as well as gain high returns due to the tourism generate by the games. AD= C+I+G+(X-M). Both in vestment and government spending rose and there for had a positive effect on Aggregate Demand. The employment of workers to build and running these complexes helped reduce unemployment in the short term as well as increasing household income, resulting in an increase in consumption causing a rise in AD. This shift in AD is shown by the shift from AD1 –AD2. Another major contributing factor...
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...approval of the bid for the London 2012 Olympic Games and Paralympic Games, the London Organizing Committee for the Olympic Games and Paralympic Games (LOCOG), was assigned the duty to strategically devise the plans for executing “the world’s largest peace-time event” (“The Times100, 2012). Tremendous efforts go into the planning and development of a mega event such as the Olympic Games. The vision for the London 2012 Olympic and Paralympic Games could potentially facilitate a substantial opportunity that will realize vast outcomes socially, culturally, economically and environmentally for the country beyond 2012 (“Times 100,”2012). However there are underlying concerns present that could potentially impact the local community, outweighing the benefits and the LOCOG’s efforts to achieve this vision. I will provide brief background information on the London 2012’s Olympic aspirations, and analyze the opportunities and debunk the concerns for the social, cultural, economic, and environmental aspects involved in delivering favorable results, according to the vision goals. I will follow with a discussion and analysis of the London 2012’s values and their effect on the goals of the Games. Then I will apply SMART methodology as a framework for measuring the London 2012 sustainability objectives. Finally I will evaluate opportunities for the local schools to become involved in the objective goals for London 2012. London 2012’s Vision Beyond the Olympic and Paralympic Games An established...
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...Topic: Socio-Cultural impacts of tourism Tourism considered as global phenomenon which is carried out by persons itself. This naturally results in meeting of different culture, economy, progress, status, etc. round the globe. Human being considered as social animal cause’s significant social culture impact by tourism. According to Teo (1994) impacts are defined as “change in value system, moral, conduct, individual behaviour, relationship, lifestyle, expression, tradition”. Social culture impact of tourism discussed below is categorised broadly as positive and negative impact of tourism, factors responsible and impact management utilising various supportive journals articles. Interaction between host and tourist at particular destination leads to social culture impacts. This could have immediate social impact like change in quality of life, adjustment to tourist industry and long term culture impact like change in standards, social relationship defined as “conducting elements of behaviour and product of that behaviour” (Weidenfeld, 2012). Broadly literatures revels positive impacts like urban relocation by creating jobs, infrastructure, security, foster pride in culture, etc. certain negative impacts like increase in crime, environmental detonation, increase traffic, alcoholism, drugs, prostitution etc. However, the impacts are considered ambiguous broadly varies country to country and hosts perceptions. Various pre studied articles are taken into consideration to have detailed...
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...In the last forty years, Uranium has become one of the worlds most important energy minerals. Primarily, Uranium produced in Australia has used for the sole production of electricity. However a small proportion of the Uranium mined is for important medical isotopes. It is for this reason that Uranium mining is an ever-important and pressing point of discussion. Mining itself has been criticized for the massive effect it on the environment around it. Uranium mining is no different, and more often then not, the after effects of Uranium mining are more detrimental to the environment. Unlike other mining, Uranium mining has also caused a major stir in the actual use of the Uranium after it has been mined. The environmental problems of Uranium mining go further then the actual mining and by products. The uses of Uranium have been seen as risky and dangerous. Using Uranium as a source of energy has already shown the disastrous effects. The melt down at Chernobyl is still causing health problems in citizens after 30 years. On the upside, Uranium mining creates employment and boosts the Australian Economy. It is for these reasons that Uranium Mining is a process that needs to be looked at carefully before any judgements are made on it's future in Australia. Chemistry Of Uranium and Uranium Mining In the Earth's crust, mineral Uranium averages about two parts per million. Traces of Uranium occur just about everywhere on earth. In Australia, the existence of uranium has been noted since...
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...Learning legacy Lessons learned from the London 2012 Games construction project Programme Baseline Report Champion Products are examples of tools and formats used by the Olympic Delivery Authority (ODA) in executing its programme. The ODA is publishing these as part of its Learning Legacy in the anticipation that they may be of use to future projects seeking best practice examples of tools and templates that have been used successfully on a large, complex programme. Purpose of the document, description and how it was used The purpose of the Programme Baseline Report was to provide a comprehensive summary of the ODA’s Olympic Programme, detailing scope, programme, budget and risk against which performance could be measured both internally and externally. The scope defined in the report includes all works required regarding site platform and infrastructure, venues, transport, and legacy transformation. This document was used to present a comprehensive statement of the scope of works required and the necessary budget for delivery. Once the document was agreed at the commencement of the programme, delivery of the works was monitored against the baseline and change could be managed robustly. Olympic Delivery Authority Programme Baseline Report Summary November 2007 report The report was updated in 2009 reflecting the status of the programme two years after the original report and after substantial completion of the ODA’s Games-time...
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...Economic growth is an increase in the amount of the goods and services produced and consumed in economy compared from one to another period of time. It can be measured in minimal terms, which include inflation, or in real terms, which are adjusted for inflation. Economic growth is usually associated with technological changes. Effect on tesco is that when economic growth occurs , it leads to increased levels of employment and spending in general public , this means that there is higher level of disposable income in the country, which leads people to not just buy essential products, but also to buy luxury products. b) Recession (a fall in income/output (GDP) Recession is a general slowdown in economic activity. It is also the opposite of the economic growth. It usually begins with a fall in demand and it is defined as a contraction in the GDP for six months or even longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally doesn’t last longer than one year and less serious than a depression. Recesion has negative effect on tesco, as it firstly means that spening in the public is much lower , when employment falls due to recession, also it means that the volume of people shopping in their stores will fall, as they will search for the cheapest options. This leads to a massively deminished market and often makes stores lower the prices and become less profitable as a result . C ) Expansionary fiscal measure Expansionary fiscal...
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