...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...
Words: 2024 - Pages: 9
...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...
Words: 771 - Pages: 4
...are visiting Northern Ireland because of the ongoing very delicate political situation. Moreover, Hilton’s performance is directly affected by consumer protection and employment laws in UK, as well as, the nature of competitive regulation, and risks of military invasion in the country. ECONOMIC FACTORS National macroeconomic situation and factors and events impacting the situation are major factors affecting Hilton Hotels & Resorts business in the UK. For example, during the Olympic times in the UK most of the hotels were occupied and booked fully for the whole period. However, the situation was completely different once the Olympic Games were over. Additional economic factors that affect Hilton may include the extent of expected and real economic growth in the UK, national taxation policies, and seasonality and weather problems. SOCIAL FACTORS The Hilton brand is very well known amongst international visitors and the UK is one of the popular destinations for the tourists and shopping lovers. A wide range of social factors impacting Hilton Hotels & Resorts include emerging trends in consumer lifestyle, consumer demographic variables, the impact of role models in consumer decision making, and growth rate of population. For...
Words: 599 - Pages: 3
...complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely. 1. a. Define opportunity cost, and explain its importance in economics. (3 marks) The opportunity cost of something is what you must give up of one thing, in order to get another. Opportunity cost is a key concept of economics, and is described as expressing the basic relationship between scarcity and choice. The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently. b. The province of British Columbia hosted the 2010 Olympic Games and invested millions of dollars in improvements to facilities for these events. How would one determine the opportunity cost of the 2010 Olympic Games? In order to determine the opportunity cost of the 2010 Olympic Games, the province must consider what they could have done with the money (4 marks) if they had invested it elsewhere Also to be considered is the Event Benefits less the Event Costs. 2. Use the graph below to answer the questions that follow. (2 marks each) [pic] a. What type of curves are these? Do these curves show a positive or negative correlation between price and quantity? The curves in the above graph are representing Demand, thus a demand curve. They show a negative correlation between price and quantity. As the demand increases the...
Words: 3298 - Pages: 14
...in order to obtain it, that is the way that society allocates its scarce resources. ALSO, OPPORTUNITY COST IS VERY IMPORTANT FOR THE THEORY OF COMPARATIVE ADVANTAGE AND TRADE. -1 MARK. b. The province of British Columbia hosted the 2010 Olympic Games and invested millions of dollars in improvements to facilities for these events. How would one determine the opportunity cost of the 2010 Olympic Games? (4 marks) The opportunity cost for BC to host the games could be determine by evaluating and comparing what the province could do with the funds (tax payers money) and time that it will invest in the games against, the benefits that could bring to the to the province if BC against the benefits that that money and time will create if invested differently. In one hand the province could add all the benefits that the games will bring to the province; benefits such as increase in tourism, sales, international exposure, etc. At the same time the benefits that infrastructure will bring to the province, such as new sports arenas, new show venues, creating a huge value to the province and to athletes in general. In the other hand the province could add all the benefits that the budgeted money could bring to the province if it was not use for the games, but use to other...
Words: 3577 - Pages: 15
...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...
Words: 11117 - Pages: 45
...Introduction : The below essay is about Coca-Cola company which is a beverage manufacturer established in the year 1892.The company's primary product is Coca cola which was invented in the year 1886 and was first bottled in 1894.The focus of this essay will be on developing a marketing strategy for Classic Coca-Cola or Coke for first half of 2012.This will also discuss about the market segmentation ,pricing strategy and target market using micro and macroeconomics concepts. The economic forecast report 2012 from different sources clearly communicates high economic growth , less unemployment and inflation rates. http://businomics.typepad.com/businomics_blog/2010/11/economic-forecast-2011-2012.html Coca cola can use alternative scenarios to reduce the production cost * In countries were labors are very expensive, installing automated manufacturing machines and reducing the labor numbers in the production line will help to reduce its cost. * Coco cola base syrup which is the raw material is imported from regional units to several bottling plants which incurs transport cost, if it is manufactured at the same bottling plant some cost can be saved. * The use of LED lighting and automatic shut-down technology during rest periods in all plants will help to reduce cost on Energy. * Production of own energy from renewable sources like solar ,wind in the bottling plant will help to reduce energy costs. * Coca cola can effectively introduce bio degradable...
Words: 1741 - Pages: 7
...is also being adapted to the park employees where the value may not be shared with the European’s. Besides that, the flexibility of the company to fire any of the employees who don’t follow the rules is also limited as the worker’s rights are very strictly protected by the French law. 2.2 Events that took place during the same year. Other than the failure of realizing the local culture in France, the management of EuroDisney also fails to do a scanning of any important or big events that are being held on the same year of its first year of operation. In 1992, the World’s Fair is being commenced in Seville, Spain where they attract more than 18 million visitors or European tourists (Riding, 1992). Besides the World’s Fair, Olympic game that is being held once every four years was also...
Words: 1511 - Pages: 7
...structural change for monetary policy that shows effects on the interest rate trends will be discussed particularly. Meanwhile, concerning the influences that financial instruments would have on the interest rate change, some basic market information such as balance between supply and demand as well as liquidity effect are demonstrated specifically. On the other hand, some forecasts of the interest rate tendency of Australia and china will also be explained. Introduction The core focus on this report is the interest rate, within two countries, Australia and China. The former one’s interest rates are strongly influenced by mining boom, while the latter are significantly manipulated by the outbreak of Asian financial crisis, holding of Olympic Games and eruption of Wenchuan earthquake....
Words: 2390 - Pages: 10
...Global Business Cultural Analysis: Brazil Liberty University BUSI 604 Abstract This research paper analyzes the effect of Globalization on the country of Brazil, and how its economy compares to other South American countries and the world. This review will provide factual evidence of the integration of the Brazilian products internationally, and how its economy has evolved to compete in the international markets. A Comparative summary of evidence will be provided in this analysis between the business culture of Brazil, North American, Central America, the Caribbean, and other South American countries economic framework. The framework of the origins of Brazil, and to the progression of the nation into one of the top economies; will be discussed in this assignment. A small glimpse of the picturesque country will be provided in the form of pictures, to give the reader a greater ability to visualize this country and its inhabitance. The major elements and dimension of culture is reviewed, and these dimensions are; what the major elements and dimensions of culture are in this region; how these elements and dimensions are integrated by the locals conducting business in this region; how these cultures and dimensions compare with U.S. cultures and business; and what the implications are for U.S. businesses that wish to conduct business in that region. This paper will review some of the desires of Brazil’s government to be one of the world’s leading...
Words: 4086 - Pages: 17
...#3 Economic Impact of the FIFA World Cup 2014 on the Host Destination Brazil Table of Content Introduction 3 Economic Impact 3-4 Event Tourism 4-5 Image and place marketing 5-6 Urban development and renewal 6-8 Social development 8-9 Conclusion/Discussion 9-11 Bibliography 12 Introduction The purpose of this report is to analyze and define the economic impact of the FIFA World Cup 2014 in Brazil. An economic impact report allows public sector bodies to analyze their economic return on investment and it also demonstrates how events drive economic benefits that enable event organizers to develop practices maximizing these benefits. (eventIMPACTS) In 2007 Brazil was announced as the host of the world`s biggest football event, the FIFA World Cup 2014. This will be the second time the country has hosted the competition, making Brazil the fifth country to have hosted the FIFA World Cup twice. This extraordinary event will be held from 12 June till 13 July and will take place in 12 stadia spread over Brazil. (Brazilian Federal Government) This paper begins with an overview of the economic impact by hosting this event. Furthermore I will outline the impact of the 2014 FIFA World Cup on tourism, the destination image and the development of infrastructure. I will then conclude by identifying the social impact of this event and discuss...
Words: 3883 - Pages: 16
...TABLE OF CONTENTS Table of Contents .............................................................................. 2 Introduction....................................................................................... 3 1.1 A review of the size and scope of conferencing and banqueting industry in the United Kingdom......................................................... 4 1.2 An analysis of the different influences that have shaped the industry.............................................................................................. 7 Conclusion ........................................................................................ 10 Bibliography ..................................................................................... 11 INTRODUCTION Conferencing and Banqueting sector is very important in the hospitality industry. Conference can be refer to as meeting of group of people in formal gathering to discuss business e.g. business meeting while Banquet can be refer to as an arrangement for person receiving services who wish to do a ceremony or celebrate an important time e.g. wedding ceremony. Conferencing and banqueting is all about making provision for foods and beverages to some a certain group of people to gather and eat together at the same time. According to [Cousin, Foskett, Gillespie, (2002)], Conferencing and banqueting is just about gathering together an event and it usually have as a capacity of different forms of gathering...
Words: 1474 - Pages: 6
...for more than two decades. To make it worse, the economic crisis in 2008 and March 11, 2011 earthquake and tsunami in Japan were a great hit to the economy. A decline in exports and increase in imports, especially fuels and energy, made Japan has to face trade deficit and how to increase its international competitiveness. There were some signs of recovery from 2012, especially with Shinzo Abe became the Prime Minister and implemented “The Three arrow”, which is a series of fiscal, monetary policy and structural reforms, so called “Abeconomics”. The PEST model which macroeconomic environment will be analyzed and see whether it is attractive for MNE come to Japan. From Porter’s Diamond model, how Japan can increase its national competitiveness will be further discussed. MAIN CONTENT: For an MNE to decide whether to go to Japan, the thorough analysis of PEST model has to be done. An all-round overview of macroeconomics environment, including political situation, economic environment, social and culturally, and technological dimensions is needed. a. Political environment The change of political leader in Japan usually would not bring instability to...
Words: 4067 - Pages: 17
...1. Social justice and equity is more important than economic justice and equity. Social justice generally refers to the idea of creating a society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being Defining Social Justice Social justice encompasses economic justice. Social justice is the virtue which guides us in creating those organized human interactions we call institutions. In turn, social institutions, when justly organized, provide us with access to what is good for the person, both individually and in our associations with others. Social justice also imposes on each of us a personal responsibility to work with others to design and continually perfect our institutions as tools for personal and social development. Defining Economic Justice Economic justice, which touches the individual person as well as the social order, encompasses the moral principles which guide us in designing our economic institutions. These institutions determine how each person earns a living, enters into contracts, exchanges goods and services with others and otherwise produces an independent material foundation for his or her economic sustenance. The ultimate purpose of economic justice is to free each person to engage creatively in the unlimited work beyond economics, that of the mind and the spirit. Social justice based on the values of fairness, equality and respect...
Words: 3417 - Pages: 14
...Volume - I No.2 August 2013 Challenging to Change - Sustainability Issues In India!! Social Networking Sites and Social Science Special Interview with Prof. Daniel Miller Macroeconomic Effect in Brazil due to upcoming FIFA World Cup and Olympics Street protests: an EPS perspective Too Many Too Little Debtanu Dutta Surbhi Verma EPS Co-ordinators (Batch 2012-14) eps@iimk.ac.in Manjunatha Belgere Ajinkya Lokare Faculty Advisory Board Prof. Kausik Gangopadhyay Prof. Subhasis Dey Prof. A. F. Mathew Prof. Sthanu Nair Prof. Venkat Raman Prof. Rudra Sensarma Editorial Board Biswa Prateem Das Debtanu Dutta Manjunatha Belgere Presented by Economics Politics & Social Sciences Interest Group Indian Institute of Management Kozhikode Editorial After an inspiring success of the inaugural edition, we are very happy to present you the second volume of “Pragati”, magazine from Economics, Politics and Social sciences (EPS) Interest Group of IIM Kozhikode. This time it is much inclusive and much bigger. We received articles from students of the esteemed colleges of India and published the best among them. This is a result of tireless effort and dedication from the student members of the group and endless inspiration and help from the faculty members of our “Faculty Advisory Board”. EPS Interest Group is a cohort of enthusiasts on economic, political and social issues. Main aim of this group is to create awareness about recent related issues and sensitize...
Words: 33803 - Pages: 136
