world cup 2010 pdf
With Italy’s socking win to become the world’s best soccer team, it seems prudent to discuss something that is not usually connected with soccer: the economy.
It may seem strange, but many say it is true, that the outcome of this super sports event dictates the economic future of the participating teams and in turn, the world. It has been researched, and evidence has been found, to hypothesize the winners of the World Cup can expect to have a small boost in their finances as a result of the win. In “Soccer and the Economy: March 2006 Edition”, Ruben van Leeuwen and Charles Kalshoven discussed this phenomenon. In their document van Leeuween and Kalshoven look to a study conducted to the Algemene Bank Nederland (ABN) and the Amsterdamsche-Rotterdamsche Bank (AMRO) showing that the winning countries tend to see a 0.7% increase in their market. Most of this increase is contributed to the positive energy generated in a country from a win. A win at the World Cup causes a whole country to feel pride and happiness, and happy people just love to buy. Plus, parties to celebrate the win will generate revenue and work, especially in bars and supermarkets. Another means of economic growth come from the sale of souvenirs commemorating the big win. Finally, a country that wins the World Cup is recognized by the whole world because of its achievement. This recognition may open up new trade opportunities and make businesses more inclined to invest in the country (Kalshoven and Van Leeuwen).
In 2002, .3 billion people watched the World Cup Final in Japan, and this number is predicted to be much higher in Berlin (Unknown). This amount of publicity certainly helps stimulate the economy in general, but past wins reflect that the theory that economic growth and World Cup champions go hand in hand. According to van Leeuween and Kalshoven, there have only been two exceptions to this theory since 1970: in 1974 and 1978. In these two years, the German (’74) and Argentine (’78) economy declined, however the economy of the losing finalist both years, the Netherlands, had a far greater loss. However, in 1988 the Netherlands finally had its victory and its economic growth. IN this year the Amsterdam stock market gained 29% more than it did the previous year. Van Leeuween and Kalshoven have seen a gain of about 10% for the World Cup champions and a loss of about 25% on average for the losing team. This growth is not uncommon, says van Leeuween and Kalshhoven as they have seen on averaged a 10% gain for the World Cup champions and 25% loss for the losing team (Kalshoven and Van Leeuwen).
Before the beginning of the Cup, Brazil and England were the favorites, but with these two already out it is hard to tell who will be gaining that economic boost. Germany, as the host country, has put more than $350 million into transportation improvements for the Cup and in total $1.7 billion to improve stadiums (Higginson). Since they have put so much in, it may be safe to say Germany deserves this win. Also, Germany has fallen on economic hard times, making a win highly beneficial to not only the economic state of the country but the psychological state as well. However, on Sunday Germany’s dreams were dashed by a stellar overtime performance by the Italian team. However, Germany is not totally discouraged as it expects at least a 1.6% increase in its GNP due only to the revenue generated from being a host country. Plus, the new jobs created by this opportunity have led to an 11% increase in Germany’s unemployment rate (Drew).
It shall remain to be seen whether or not Italy has the economic golden egg hidden under the title of World Cup Champion, but at least it is sure they have the respect of the world (a maybe a bruised sternum). The next World Cup is not set to be played until summer 2010, when it will be hosted by South Africa.
Works Cited
Drew, Catherine. “VOA News-German Businesses Await Economic Effects of World
Cup.” News VOA. 8 June 2006. 28 June 2006 http://www.voanews.com/english/2006-06-08-voa37.cfm.
Higginson, Matthew. “Financial Goals: the Wealth Behind the World Cup.” TMCNet. 12
June 2006. Technology Marketing Corporation. 28 June 2006 http://www.tmcnet.com/usubmit/2006/06/12/1677445.htm.
Kalshoven, Charles, and Ruben Van Leeuwen. Netherlands. ABN AMRO. Soccernomics
2006: Soccer and the Economy. 22 Mar. 2006. 28 June 2006 http://www.abnamro.com/pressroom/releases/media/pdf/abnamro_soccernomics_2006_en.pdf.
Unknown.”World Cup 2006-Private Sector Development- the World Bank Group.”
Private Sector Development Home. Summer 2006. The World Bank Group. 28 June 2006 http://rru.worldbank.org/features/worldcup2006.aspx.
About the Author:
Sarah Deak is a contributing business writer for
http://goliath.ecnext.com.
http://goliath.ecnext.com>Goliath
is one of the Internet’s largest collections of business research, news and information.
Article Source: ArticlesBase.com – The World Cup and…Economics?: What Italy has to Expect
Ireland Out of World Cup
|
|
Soccernomics: Why England Loses, Why Germany and Brazil Win, and Why the U.S., Japan, Australia, Turkey–and Even Iraq–Are Destined to Become the Kings of the World’s Most Popular Sport $5.94 Why do England lose? Why does Scotland suck? Why doesnât America dominate the sport internationally…and why do the Germans play with such an efficient but robotic style?These are questions every soccer aficionado has asked. Soccernomics answers them.Using insights and analogies from economics, statistics, psychology, and business to cast a new and entertaining light on how the game works, S… |
|
|
The Tea Enthusiast’s Handbook: A Guide to the World’s Best Teas $7.98 “A guide offering concise, authoritative advice on understanding, buying, and enjoying the six classes of tea, with identification and location photography throughout”–Provided by publisher.Title: The Tea Enthusiast’s HandbookAuthor: Heiss, Mary Lou/ Heiss, Robert J.Publisher: Random House IncPublication Date: 2010/03/30Number of Pages: 200Binding Type: PAPERBACKLibrary of Congress: 2009038326… |
|
|
Uncommon Grounds: The History Of Coffee And How It Transformed Our World $10.00 Since its discovery in an Ethiopian rainforest centuries ago, coffee has brewed up a rich and troubled history, according to Uncommon Grounds, a sweeping book by business writer Mark Pendergrast. Over the years, the beverage has fomented revolution, spurred deforestation, enriched a few while impoverishing the many, and addicted millions with its psychoactive caffeine. Coffee is now the worl… |
|
|
Garmin nüvi 295W 3.5-Inch Widescreen Wi-Fi Portable GPS Navigator $124.99 nüvi 295W offers a new take on an old favorite with Wi-Fi® connectivity, a 3 MP camera with auto-focus, dual orientation capability and much more. Dual-orientation with 1-touch navigation Get ConnectedWi-Fi connectivity on the nuvi 295W provides a full desktop web experience with an HTML browser so you can surf the web whenever and wherever you choose. Check your e-mail, including… |
