Matt Yglesias and Ryan Avent argue the effects. Yglesias argues that countries rarely manage to reap the financial struggle. Contrary, Ryan Avent claims it helps countries overcome "significant constraints in trying to get necessary policy changes put in place". There is a thirrd view by Andrew K. Rose and Mark M. Spiegel that hosting a mega-event might not have immediate tangible benefits but it might have a large effect on national exports. The effect is statistically robust, permanent, and large; trade is around 30% higher for countries that have hosted the Olympics.
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It definitly makes sense that the trade is increased for the hosting countries of the olympics because so many people come from all over to see them.
ReplyDeleteI have to agree with the comment above. I guess it could be a good thing, if more and more people show up then I guess financially its rising.
ReplyDeleteThe cost associated with hosting an olympic game is not beneficial for most countries. Especially if they do not already poses some basic buildings and infrastructure in order to support the games. The games in Beijing were a huge detriment to the Chinese economy. They will never make up for the extremely expensive cost of the 2008 summer games.
ReplyDeletethe olympics definitely help to increase tourism and local business revenues. even employment increases. at the same time in order to promote national pride alot of times countries go into extreme debt to flex their muscles. this can hurt distant parts of the nation that are not really part of the olympics boom. i believe olympics help specific cities a great deal; but if anything simply increase national debt.
ReplyDeleteI agree with the above post because the Olympics are more a show of wealth, power and pride for the country. Most of the countries don't have the facilities to host the game so they spend a lot of money to build them. It would create more jobs though.
ReplyDeleteThis is an interesting statement because it does cost a lot of money to host the Olympics from contruction and the HUGE responsibilities of safety aka police and haveing enough facilities to hold the mass amount of people. But! It does give the country large recognition and a huge increase in trade! You cant argue with the fact that it boosts trade 30% ! And i agree with the post above me about it boosting jobs, that infact would help the countries own economy because more jobs for the people then more money that they can spend themselves.
ReplyDeleteI agree that hosting the olympic games would benefit the country as far as tourism and trade. An event as large as the olympics draws a massive amount of spectators. Some in the form of tourist and others watching from their couches. Either way, a huge number of people are going to be introduced to what your country has to offer. I can see how this would draw in tourists, companies that are looking to go international, and companies that are looking for supplies that your country can export. The only problem is that in order to host the olympic games, countries have to spend a large amount of money in preparation costs. Most countries do not have this kind of money to give up and must rely on the hope that the increase in tourism and trade are enough to not only pay off the bill of the olympics, but also, bring in enough for a profit.
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