Fifa World Cup Case Study

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The FIFA World Cup- Is It Worth? Background The recent world cup organized by the emerging economy Brazil, has unfolded many interesting facts to think about. The football game played with all the glitz and glam has attracted the attention of many potential investors. The showbiz had provided ample opportunity for the participating countries to boost their economy. But this is not the complete picture because the facts say a slightly different story. And hence to know the complete picture and to study the economic impact of the World cup, it is imperative to analyse the case from different perspectives. FIFA- The bidding process The football world cup is an international football competition organized by the senior men’s national team,…show more content…
In return the host country gets the opportunity of creating millions of jobs to build the required infrastructure. Moreover, the game brings lots of foreign currency during the matches. The tourism industry gets the edge as millions of foreign visitors come and spend during the event. The GDP of the country tends to rise. But once the match is over, the host country is left with the huge bills to pay for the lavish infrastructure and other facilities that were created to woo the FIFA and the visitors. The maintenance cost is another pain for the country which is difficult to manage because the huge infrastructure created remains underutilized. Apart from the economic pressure and the benefits, the host country gets the branding, the recognition and the attention of the investors. • Winning country: The country taking the world cup gets all the attention of the global investors. The market sentiment of the country gets a boost. Investors’ confidence increase considering the fact that the country has the sufficient man power and financial resources to win the international championship. This gives a high feeling to the countrymen and their confidence level increases for the domestic…show more content…
And in order to do so, the organizations train their people to meet the existing requirements. This gives them the opportunity to earn more in future with their enhanced skills. For example, the proficiency of English language is required to entertain the visiting guests. The organizations train their people for that, which is good for them and their people in the long run. • The Cons - The game full of losses Even though the glamour created by the game brings lots of economic opportunity for the host country, the impact of the event is limited till the game is over. After that the country is burdened with the bills of the expenditures made during the event and the maintenance cost of the underutilized infrastructure after the event. - Channelization of funds in the infrastructural projects that is less on priority The countries like Brazil and South Africa who have hosted the previous two world cups are the developing economies. They do not have basic infrastructural facilities like hospitals, schools, sanitation, houses etc. for their countrymen. And in this situation, channelizing the funds for the growth and development of stadiums, roads, highways, hotels etc. sounds unrealistic and

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