Ventajas Y Desventajas Mundial 2010, Punto De Vista Economico

What is the cost and benefit of hosting a FIFA World Cup, taking in example South Africa 2010?

Extended Essay

Written By: Juan Camilo Malagon
IB code: Non IB diploma student

COLEGIO ANGLO COLOMBIANO
BOGOTÁ D.C. – COLOMBIA

15th of November 2011

Abstract:

This extended essay directs to the Economics matter, thanks that the main topic of this work has many of the aspects fromeconomics itself. I chosen this topic thanks that I wanted to understand more deeply this vast economic events, thanks that we as normal citizens can only see what the news shows us, and most of the times only see the good part of this events, but we never see the effect this types of events can have for society and that they have also many cons. So I figured out that taking in example the worldcup of South Africa was perfect for this study thanks that it was the first time that the tourney was done on an African country, and as Africa is a continent with many social, economic and political problems I figured out that this event would have a lot more controversy than the ones done before, and it would have a bigger effect on the economy of the country, so that we could see more clearlythe cost and benefit of it.

Table of Content

Page 1: Cover page
Page 2: Abstract
Page 4 to 5: Introduction
Page 5 to 10: Investigation
Page 10 to 11: Conclusion
Page 12: Bibliography

What is the cost and benefit of hosting a FIFA World Cup, taking in example South Africa 2010?

Introduction:
Why is this event so important? Well this is the tournament most watched worldwide, thatsuppsly to FIFA over a 15% of all the worlds population watch the semifinal and final matches, and about 10% of the population watch the qualification rounds, which is about four hundred thousand million viewers all watching the tournament at the same time. So this fact implies that there’s a huge range of costumers from all kind of ages, religion, political views, gender, ideologies, nation, etc.And when there’s this kind of events the advertisement becomes massive, in the sense that the companies that are advertising it have to be companies which have worldwide consumption or perspective if they want to make effective they’re campaign, so the companies able to do this type of advertisements are like: MacDonald’s, Budweiser, Adidas, PlayStation, and may others. But there’s also anotherway of advertisement which is more local which is done by advertising not in the World Cup itself, but in the local channels that target into a country or a region so that smaller companies with a smaller perspective PYMES, and with a smaller budget can advertise they’re product in a region were the product is available and known.

But the most important part of this work is to identify why thistournament can affects in a way the economy of the host country. And well this is an event that had an special impact thanks that it was the first time that the World Cup was done on African territory, which means that the football culture was not so established in this area, so the impact on infrastructure has to be much larger, and an example of this fact was that for the tournament 10 stadiumswere used in 9 host cities, and that 5 of the 10 stadiums were completely new, and the other 5 were vastly upgraded for the event, so they didn’t have not one stadium which was capable of maintaining this type of events. This event took place in eight of South Africa’s nine provinces, which says that the impact is not just in one small portion of the countries territory, it’s almost in all of it.These are some of the main factors showing the size of this event:
-According to South Africa’s government the World Cup will contribute almost to 6,1 billion dollars to its economy, both in the private and non private sector. It would generate about half a million jobs, and would contribute about 20billion in income tax to its government.
-Between 2006 and 2010, which was the initiation...