Impact of Global Events on Economy

This document analyzes the impact of global events, such as the Olympics, on the economy of the host country. It discusses the benefits of hosting events, such as job creation and future trade opportunities, as well as the disadvantages, such as increased costs and pollution. The document also provides recommendations for host countries to consider before bidding to host such events.

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Executive Summary
Global events such as Olympics and other are organised at wide level and provides
several benefits to host country by increasing in employment opportunities. It brings several
growth opportunities in social as well as financial prospective. These events play a significant
role in overall economic development and help to increase and maintain higher GDP rate. There
is huge investment is done in global events by both public and private sector. It upgrades
infrastructure, sports facilities, business and trade practices within host country that is beneficial
for overall growth and nation. In addition, global events also has put some adverse impact in
terms of higher cost, pollution, misuse of natural resources within country. Thus, there is
requirement to analyse the impact to take effective decisions whether to host it or not.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
ANALYSIS......................................................................................................................................5
RECOMMENDATION:..................................................................................................................7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
There are several events are organized at national as well as international level that play a
major role in overall development of a country.Global events refer to the events that are
organized at large level in order to reach maximum number of people across the globe. These
events put a great impact over external environment and the population of country thus it need to
analyse on timely basis (Barrios, Russell and Andrews, 2016). It is monitored that global events
are organised at large scale in which participation is received from domestic as well international
audience. Nowadays different events such as Olympic, cultural festivals, music events are
organised in different countries that put a significant impact on image of particular country
worldwide. As per the given scenario Olympics are global events that are organised at wide level
in different parts of world.
Benefits of hosting event:
Here, Olympic events are crucial and significantly affect the overall growth and
development of economy of hosting country. It creates ample of job opportunities within nation
that is essential to improve standard of living of people (Dabscheck, 2018). In addition, proper
infrastructure is also develop to conduct global events which helps in overall growth of nation.
Further, several people such as sports person, audiences visit to country during Olympics that is
beneficial for tourism industry and also generate a source of revenue for local people.
Disadvantage of hosting events:
There are certain negative impacts to organise global events as it increase pollution
within nation. Natural resources available within country are also misused during and after
events. For the purpose of Olympics, proper infrastructure is prepared that incurred huge cost
and also remain unused after events. Hosting country also need to make proper arrangements to
organize Olympics as sports person, athletes and individuals from different country take part in
it at large level. Therefore, these all activities put a great burden over country, society by
incurring huge expenses.
Therefore, Government of various countries need to analyse ample of factors and the
impact of global events on overall economy before bidding. There are several positive as well
negative impact of organising Olympics which need to considered by hosting country in an
appropriate way.

MAIN BODY
ANALYSIS
It is analysed that global events has significant impact on overall economy of nation
which are both positive as well as negative. It creates huge sources of employment by promoting
travel and tourism within nation that will eventually enhance standard of living of citizens. On
the another side Olympic also put a great impact on existing tax policies, legislations of nation.
Various impact of global events over economy of hosting country are given as under:
Job creation:
It is monitored that events which are organised at global level create huge job
opportunities for individuals (Driml, Ballantyne and Packer, 2017). Due to Olympic several
people come ans stay in country that is a major source of revenue for those people who are
working in tour and travel industry. In addition, travellers also spend ample of money for to
purchase required products and avail necessary services. As per the current report global events
witnessed spending of nearly $1.07 trillion worldwide. To conduct Olympics, a wide
infrastructure is prepared that provides employment to workers and creates a source of revenue
for them. In addition, it also promotes local places among international audience and enhances
number of travellers within hosting country. Major activity which is carried out to organise
Olympic games is construction of stadium and prepare necessary infrastructure that creates job
opportunities for several people within hosting country.
It is analysed that in the year of 2017 global events created 10.3 million jobs worldwide.
With this, these events increases earning of people that is essential to improve their standard of
living. Due to the global events several jobs are created in different fields such as travel,
transportation and more but it majorly creates opportunities in hospitality sector. People who
visit country, they book hotels to stay, visit local tourism destinations that creates job
opportunities for local people (Khraiche and Alakshendra, 2020). They also use local
transportation services to move from place to another place within country which generates huge
revenue. It is analysed that there are several countries who get exponential benefits from
Olympics. For instance, US got several benefits for hosting global events at large level. To
organise such events countries make appropriate arrangements in terms and enhance their tour
and travel facilities to create better image among interactional audience. Therefore, various
global events such as Olympics and more are helpful to create several job opportunities in

different fields such as hospitality, transportation and more. That will be beneficial for overall
development of a hosting nation.
Costs to tax payers:
Tax is the major source of revenue for government of a country. There are several kind of
tax such as services, income and other indirect tax are levied on people of a country (Malhado
and Araujo, 2017). In context of Global events, it highly affect current slabs, charges that are
being paid by taxpayers in order to avail better services. There is huge cost is incurred to conduct
Olympics and that money indirectly gathered from citizens of hosting country in terms of tax,
duties and other charges. It is applicable to both domestic as well international audience that
affects their daily lifestyle by enhancing additional expenses.
To organise Olympic games hosting country needs to do huge investment in regards of
infrastructure, arrangements and more. For this, they gather necessary money from tax payers by
increasing tax rates on various services. For instance during London Olympics public sector
funding was almost 6.7 billion which was gathered by local people. Due to this, government of
hosting country increase the amount of tickets, and other facilities being provided by them. So,
the burden was on tax payers as they need to pay additional charges. Although, International
Olympic Committee ( IOC) grant funds to conduct Olympic games but that is not sufficient to
organise such an event in which people for different countries participated. It not only affects to
domestic tax payers but also the international audience who come from other countries. During,
Olympics ample of equipments also imported from other countries on which tax and additional
duties need to pay by hosting nations (McLeod, Pu, H. and Newman, 2018). For instance, During
London Olympics, government import necessary resources to organise event in better manner
that increased overall cost and eventually put burden over tax payers. Although, Olympics
significantly contribute in overall development of a country but it also incurred huge cost that
ultimately received from tax payers. There are several nations that got bankrupt due to Olympics
as they need to do higher expenses to organise such a large event. For instance, Sydney Olympic
was proved a great failure as company was on the position of bankruptcy due to this. Thus, it is
essential to monitor the impact of global events before bidding in order to ensure success of these
events.

Future Trade:
Global events also creates several opportunities for future trade and business. It gives rise
to travel and tourism within host country. It is analysed that there are several hotels, resorts are
opened in host nation to serve traveller in better manner. Several people visit to nation during
Olympics. For this, countries, explore number of hotels and invest in travel industry to attract
more number of visitors (Meng and Siriwardana, 2016). It is analysed that events bring several
opportunities for host countries by enhancing its image at global market place. To conduct events
at global level, nation need to import numerous necessary equipments from various nations
across the globe. This practice helps to maintain more effective trade relationship between
different countries which will provide ample of benefits by raising export facilities.
Further, Olympic will also give rise to transportation facilities within hosting nation that
is also a great source of employment and revenue for individuals. With this, local talents,
services also noticed by international audience which will provide rise to trade. Therefore, there
are numerous opportunities have been created by global events for future business and trade.
Thus, host country need to analyse the opportunities available at market place for betterment of
nation.
RECOMMENDATION:
From above discussion, it is monitored that global events are essential to enhance image
of country at global market place and play a major role in overall development of nation.
Olympic is a sports event that is organised at international level in different countries. There are
some necessary improvements which are need to be undertaken in order to ensure growth of a
country. That are given as under:
 Government of host nation needs to analyse their resources before bid for Olympics as it
incurred huge expense. They need to prepare necessary infrastructure and make
arrangements to provide better services to international visitors to maintain better image
of nation worldwide. Therefore, they need to make appropriate estimations for bidding to
host such a wide event.
 At the time of bidding, first authorities need to monitor prevailing conditions within
country. They need to analyse resources such as funds, infrastructure, available facilities
and many more so that they will be able to organise global evens effectively. In events,

several travellers visit and stay in country so it is essential to provide them better services
and experiences in order to maintain good image worldwide. It will also give rise to
future business and trade.
 It is analysed that huge expenses are incurred to conduct global events that put huge
burden on tax payers. Government of country is required to arrange suitable funds in
order rather overcharged from citizens. For this, necessary grants need to be taken from
international committee of Olympics in order to organise event in better manner.
 In addition, authorities of host country are required to promote hospitality, transportation
and other services within country. With this, employment opportunities will enhance that
are essential to improve standard of living of individuals. Further, they need to take
effective steps to rise future trade for betterment of nation. It will also help to improve the
image of nation at global level and significantly contribute in its GDP.
It is monitored that above stated suggestions are required to monitor in order to take
effective decisions that country need take participate or not.

CONCLUSION
Out of above report, it is analysed that there are various types of events which are
conducted at different level with different purpose. Here, numerous events are being witnessed in
different countries that are organised at global level. Olympic is a sports events in which
participation is take by sports person, athletes, audience from different countries. Here,
discussion has been carried out regarding the impact of global events over economy. It is
analysed that Olympics are the major source of employment and help to enhance revenue of
individuals. In addition, it also affect taxpayers within country as government charged additional
amount form domestic as well as international audience in terms of tax. There is also scope to
enhance future trade within host country that will give hike to economy. Moreover global events
put significant impact over nation which can be positive and negative.

REFRENCES
Barrios, D., Russell, S. and Andrews, M., 2016. Bringing home the gold? A review of the
economic impact of hosting mega-events (No. 320). Center for International
Development at Harvard University.
Dabscheck, B., 2018. Circus Maximus: the economic gamble behind hosting the Olympics and
the World Cup, by Andrew Zimbalist, Washington, DC, Brookings Institution Press,
2015, xvi+ 174 pp.(US) $34.99 (hardback), ISBN: 978-0-8157-2651-7.
Driml, S., Ballantyne, R. and Packer, J., 2017. How long does an economic impact last? Tracking
the impact of a new giant panda attraction at an Australian zoo. Journal of Travel
Research, 56(5), pp.613-624.
Khraiche, M. and Alakshendra, A., 2020. Hosting the Olympics: why are we always getting the
cost wrong?. Managerial Finance.
Malhado, A. and Araujo, L.M., 2017. Welcome to Hell: Rio 2016 Olympics failing to secure
sustainable transport legacy. Event Management, 21(4), pp.523-526.
McLeod, C.M., Pu, H. and Newman, J.I., 2018. Blue skies over Beijing: Olympics,
environments, and the People’s Republic of China. Sociology of Sport Journal, 35(1),
pp.29-38.
Meng, S. and Siriwardana, M., 2016. Assessing the Economic Impact of Tourism: A Computable
General Equilibrium Modelling Approach. Springer.