Economic Impact of the Olympic Games - Coursework Example

Download file to see previous pages... Thus this study contains a detailed economic analysis of the host country's economic activities that are directly and indirectly attributable to the conduct of Olympic Games. The study demonstrates that the economic benefits of the Olympic Games can be influenced by government policies and both the government and the business community would focus their efforts on strategic policies and initiatives in order to maximize the long term gains to the host country in particular (Kirkup, 2006). However it's the aggregate demand and supply shift that matters so much in this analysis. Thus the long term impacts of the Olympic Games on the host country's economy include,
Olympic Games can be identified in three phases such as, the pre-games phase, the games duration and the post-games phase (Caimbridge, 1998). In the first phase it is characterized by two different impacts which are associated with Olympic Games, such as the construction and associated infrastructure of the Games site. And in the duration of Olympic Games there would be a significant increase in international visitors to the host country in particular. During the post-games phase there would be a significant improvement in inbound tourism in the host country. As with the past experience of countries like China, Canada and others, it has been recognized that there would be an increase in labor productivity in the post-games period though its real impact on the domestic economy is uncertain (Bing, 2002). With the Olympic Games it would increase aggregate demand through construction activity, additional tourism, sales and Olympic Games related outputs e.g. export of the Olympic television rights, Olympic promotion and ticket sales and so on.
A significant number of factors have been identified in relation to the micro economic impacts of Olympic Games, such as conditions in the labor market. e.g. wage rates and the sources of Finance. e.g. price changes. As a result of the Games the Gross Domestic Product (GDP) and additional jobs would increase in the year of Olympic Games (Holger, 2004). These jobs are identified as part-time and full-time jobs and people would easy to find the works in such Game periods. As such, it would boost the productivity of labor and wages rates would increased due to the Olympic related construction and projects. There is also a significant increase in outcomes of the service industry including transport and communication, finance, housing sector, tourism and so on (Peter, 2005). Foreign exchange rates can be affected by the Olympic Games because when the exchange rates increase potential foreign investors would buy the domestic currency ...Download file to see next pagesRead More