Economic issue
The FIFA World Cup is a major soccer tournament event with worldwide fanatical following and is watched by many supporters. The event is held after every four years where soccer teams from different countries that have played and succeed at the qualifying matches meet to contest, after which the wining team takes home the cup. The event involves great anticipation and enthusiasm for the country that is hosting it.
The event usually has great impact on the economy of the host country in terms of demand and supply. The preparations of the event involve spending huge amounts of funds which increase the demand in the economy as more materials are sourced to build or repair structures to be used (Ramdas, van Gaalen, & Bolton, 2015). The demand for consumer services and products increases since there is usually a large number of international tourist visiting the country. The high number of tourist mostly driven by the increased global broadcast of the tournament, where the services offered in the host country ,especially tourists oriented products , are greatly advertised in the media. The influx of the fans into the country also greatly results in investment in foreign cash which is used to purchase consumer goods and services and this is associated with great economic benefits (Ramdas, van Gaalen, & Bolton, 2015).
The higher demand for retailing and domestic tourism brings about more revenue to the firms providing such services. The high demand also comes with increased prices for products provided by hotels and entertainment joints leading increase profits and performance for the firms (Allmers, & Maennig, 2009). The overall effect can be seen in corresponding growth in stock markets during that period and eventually, the growth in GDP.
References
Ramdas, B., van Gaalen, R., & Bolton, J. (2015). The announcement impact of hosting the FIFA World Cup on host country stock markets. Procedia Economics and Finance, 30, 226-238.
Allmers, S., & Maennig, W. (2009). Economic impacts of the FIFA soccer World Cups in France 1998, Germany 2006, and outlook for South Africa 2010. Eastern economic journal, 35(4), 500-519.
