Assignment 4: SU18-ECON202: World Cup 2018 by Lim You Ping https://padlet.com/lim_youping/lmy7f2omesev Discuss some of the economics effects of World Cup 2018. en-us 2018-06-07 15:55:47 UTC 2024-05-17 04:28:13 UTC hello@padlet.com Name: ????, ????, ????, ???? lim_youping https://padlet.com/lim_youping/lmy7f2omesev/wish/266144077 2018-06-07 16:02:18 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/266144077 Sam Wen Ping https://padlet.com/lim_youping/lmy7f2omesev/wish/267063734 Economics Effects of World Cup 2018.

1.Increase in price of consumer goods(food, hotel, etc.)

-The tourist will buy the food sell during the tournament 
-This will lead an increase in demand while the supply remained constant.
-Therefore, an upward of price will occur on the consumer goods
-Household may suffer low real income level
-The country then will suffer inflation if without the control of central bank

2.Increase the goods supply rate

-Firms will take this opportunity to produce more goods and services to maximise their profit at the lowest production cost.
-This will then lead to growth of production which is GDP rate.

3.Provide job opportunities

-The hosting country for World Cup 2018, Russia
-When there is an increase in firm production, the scale of production will be increased too.
-The larger the scale of production and operation, the more the manpower needed in that field.
-For example, 2,143 on-site jobs have been created to construct the stadium for FIFA 2010.

4.Increase in government tax income

-When the profit earned by the firms have been increased, the amount and number of taxes will be raised up too.
-The corporate tax information in Russia: Companies are subject to capital profit tax (or capital gains tax) at 20 percent, companies in Russia are charged other withholding taxes as a section of the corporate taxing Russian companies pay 9 percent tax on dividends and 15 percent when they are received by international companies.

5.Government facing opportunity cost

-When the country is being the host country, Russia, the country has to spend huge amount of money to reconstruct the stadium or even create a new one.
-This will increase the government expenditure and other investment that should have done by using that expenses.
-The investment that the government has to forgo is the opportunity cost as a hosting country.
-According to the data, 12 purposed-built stadium has been established


]]> 2018-06-13 17:53:16 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267063734 June, Sean, Jiet, Tan https://padlet.com/lim_youping/lmy7f2omesev/wish/267202193 Economic effects of World Cup 2018

1. retailers/restaurants/hotels
- experience of previous championship hosts shows that visitors who come to support their national teams spend up to twice as much money than usual sightseers
- it is estimated that a World Cup visitor will spend about USD 5000 to 8000

2. internal consumption of hist country increases
- the overall cash inflow from Championship-related travelers may contribute an additional USD 2.5-4bn to internal consumption
- This should result in additional private consumption growth of up to 1-2% y/y in 3Q-2018

3. The economy may be positively afffected by the creastion of extra jobs
-  the service, transport and trade sectors traditionally see an increase in temporary employment in the World Cup year
- it is forecasted that extra of 0.15-0.25% GDP growth is to be expected from the World Cup effect
- however, theeffect will be temporary

4. the World Cup will help to slightly smoot seasonal fluctuations rather than completely erase them
- the World Cup will act as a cushion, which will likely to help avoid a current account deficit in 3Q 2018

5. The host country's currency will appreciate during the event
- it is expected that the currency of the host country will strengthen to around 2% in the 2018 World Cup

6. The economy might be challenged 
- during the World Cup, the Russian economy may be seriously challenged by potential full or partial temporary closure of some large processing factories
- The reason is a decree issued by the Russian President whereby some hazardous works and operations should be temporarily put on hold
- The sales amount may decrease by up to 4bn USD due to the said closure, which is comparable with the income to be gained from the World Cup visitors

In summary, the 2018 World Cup in Russia is:

  • 11 host cities
  • Around 13bn USD investments in infrastructure projects (transport hubs, stadiums, hotels)
  • 500,000 international tourists
  • From 2.5 to 4bn USD cash inflow
  • Up to additional 0.3% GDP growth in 2018
  • Potentially higher tourist inflow in 2-3 years time
]]> 2018-06-14 13:01:08 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267202193 Smile Djap smiledjapweixiao https://padlet.com/lim_youping/lmy7f2omesev/wish/267234882 Economic Impacts on World Cup 2018 in Russia
1.     Country’s GDP will be boosted between 1.62 trillion rubles and 1.92 trillion rubles over the years from 2013-2023.
-       Due to growing tourism
-       Large-scale spending on construction
-       Knock-on effects from government investments
 
2.     New employment opportunities
-       Around 220 000 new job opportunities have been created
 
3.     Opportunity cost
-       The money spent on new or upgraded infrastructure is likely to be more wisely used in long-term investments in critical areas of the economy instead of building large-scale constructions that is typically justified on the grounds.
 
4.     Demand for goods and services in Russia increased.
-       Locals: demand for gym services is predicted to increase because World Cup is a sport event.
-       Tourists: demand for shelters, food and services in Russia will increase during their period of stay.
 
]]> 2018-06-14 15:34:38 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267234882 Lim Qing Lien limql0720 https://padlet.com/lim_youping/lmy7f2omesev/wish/267236488 Economic Effects Of FIFA Word Cup in Russia 
(a) Short-term spike in INFLATION
- influx of tourists and spending
- demand of goods and services from consumers (including tourists) increases causes price level of the goods and services increases too
- higher quantity of supply from the firms has increased the level of price of the products to earn profit
- profits that is earned from goods and services (food, entertainment, hotels) has increased in the nightly rates by as much as 5,000%
 
(b) Efficiency
- investment into construction, renovation, infrastructure upgrade,  and etc. lead to an increase of efficiency of the job 
-investment into products increase the productivity of the products that need to be produced and hence, efficiency is increased as well

(c) Gross Domestic Product (GDP)
-  add up to 0.2% to annual GDP growth in the second and third quarters of this year
- increase because of the rate of population higher 

(d) Employment (job opportunities increases)
- as there are 11 cities hosting the tournaments in Russia, lots of departments that will be helped on assisting this events will be organized 
- labors increases to help in increasing the productivity of the products
- vendors outside the stadium increases

(e) Opportunity cost
- the amount of money that was spent by the government on World Cup has exceeded the federal budget by 15%-17% 
- just to promote themselves to the world and to let people to leave out a true depiction of Russia’s rampant violent discrimination 

(f) Externalities
Positive Externalities: How does hosting a World Cup positively effect societal welfare?
-Revenue for the host country as a whole
-Hundreds of thousands of visitors enter the country and spend large amounts of money. 

Negative Externalities: How does hosting a World Cup negatively impact society? 
-Increase in Human Trafficking 
-Prostitues flood cities in which the World Cup takes place to meet an increased demand produced by traveling fans. 

]]> 2018-06-14 15:45:02 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267236488 Ong Mei Ke https://padlet.com/lim_youping/lmy7f2omesev/wish/267405096 Economic Effects of World Cup 2018
a. Employment Opportunity
-  the construction of stadium and increase of facilities and safety measures, the job opportunities for the local increases
-  to complete the construction within a short period of time will also increase the demand of the employees therefore increasing the job opportunities

b. income
- a lot of visitors will come and visit Russia for the FIFA World Cup which hence will increase the sales and income for the local
- the increase of tourism will also boost the income of Russia in a peak of time
- however, the spontaneous increase of income is said to last for not more than few years

c. GDP
- The total amount of spending directly related to the event, accumulated over the period 2011-2018, is expected to add up to approximately €1.1 billion (in 2010 prices). That number represents 0.3% of the estimated 2018 GDP, a very limited impetus to the economy that is lower than the usual estimate for the Olympic Games.
- The year of the World Cup itself should yield additional em- ployment for an equivalent of 8 250 man-years. In terms of GDP contribution this amounts to €53 million per year during the run-up period and to €484 million in 2018 (in 2010 prices). ]]> 2018-06-15 18:51:49 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267405096 Shan Raj shanraj1109 https://padlet.com/lim_youping/lmy7f2omesev/wish/267445297 1. Demand for goods and services increased leading to higher revenue
  • Service industries (Airlines/Hotels/Retailers/Restaurants) will have higher demand therefore average price increases
2. Externalities:
  • Positive
    • Increased revenue for the host country
    • Tourists enter and spend a lot of money
  • Negative
    • Increase in crime rate
3. Employment
  • Jobs created as stadiums and sports facilities need to be made
  • Higher demand would lead to more production and therefore it will require more manpower
  • The event itself would require Security, food vendors, sales agent, organisation which also provides more jobs
]]> 2018-06-16 13:45:40 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267445297 Kim Min & Chee Wah https://padlet.com/lim_youping/lmy7f2omesev/wish/267511099 Economic Effects Of FIFA Word Cup
Pros
1. Positive externalities (Increased revenue, higher wage for producers due to increased number of tourist)
2. Decreases unmployment rate ( More job opportunities for matches and building infrastructure)
4. Better infrastructure ( This might lead to increase the number of tourist in the future)
3. GDP increase (Higher employment rate, higher income Demand increases)
Cons
1. Negative externalities (Threat of terrorist attacks)
2. Opportunity cost (The country could have spent the money on other things instead of building more infrastructures and facilities)]]> 2018-06-17 18:26:29 UTC https://padlet.com/lim_youping/lmy7f2omesev/wish/267511099