Answer To: HC1072 Economics and International Trade Assessment Details and Submission Guidelines Trimester T1...
Komalavalli answered on Jun 11 2021
Microsoft Word - Assignment Cover Sheet revised including groups FINAL
Faculty of HigherEducation
Assignment Cover Sheet
UnitCode
HC1072
Unit Name
Economics and International Trade
Assignment Number
Individual Assignment 1
Is this a Group or Individual assignment
If Group, pleaseprovide group number _________
Due Date
22 / 5 / 2020
Declaration
Complete this and attach as a front cover sheet to your Blackboard submission
We certify that:
1. This assignment is our own work. We have acknowledged and disclosed any assistance received in its preparation and cited all sources from which data, ideas, words(whether quoted directly or paraphrased) were taken.
2. This assignment was prepared specifically for this unit only.
3. The reference list is truthful and accurate and in Harvard referencing style.
Student name/s
Student number
[must be correct]
Which section(s) did each person work on
Joshua Russell Bunyamin
ZL 2065
This cover sheet must be attached to your assignment
1. Event description:
Olympics is the event that is reported in the article. Olympics 2020 was supposed to held in Japan but due to the worldwide outbreak of COVID-19, the event is being postponed to the next year 2021. Olympics is not only the biggest international sports event but also a global financial enterprise. The hosting country is likely to spend billions of dollars on this event. I am always interested to understand the economic and social significance of the Olympics- whether Olympics is worth the money spent by the host country as well as the participating countries.
The products that is primarily sold in Olympics is the sports of various kind. But there are others services sold in this global event that includes entertainment, media, tourism, airline service, hospitality and many others.
Olympics is the biggest international sports event that is being held in every four-year hosted by different countries. The countries that hosts the Olympics spend billions of dollars – it is even difficult to comprehend the actual expenditure on staging this mega event.
Like several other countries, Australian Olympic Committee (AOC) is spending huge amount of money in participating this event. Australian athletes who are participating and winning the medals in this prestigious global event are national pride, inspiration to the youth of Australia and social cohesion. (Cleary, 2018)
Olympics games is a complex undertaking that involves several parties across the world. The host country like Japan in this year is the key supplier. The main stakeholders for this event are various level of government in the host country, the entertainment media, different levels of sports federations, national and international sponsors. The consumers are many - they are identified as spectators around the world, tourism and hospitality sector who provides the accommodation and food, airline industry, countries who are
2. Demand and supply:
Microeconomic theory suggests that demand for any product or service depend on various factors that includes income of the consumers, taste and preference of the consumers, price of related products, number of buyers, expectations of price rise in future. As far as the Olympics event is concerned, the demand determining factors are strikingly different than other. Definitely the GDP or the economic growth is a key demand determining factor to host the Olympics games. Population is not everything or the major deterring factor for Olympics. A big talent pool and the key resources to develop the talent is a primary requirement for hosting and participating Olympics. Willingness to spend on this resource plays a very important role here. For example, India is a populous country with 1.33 billion people with massive talent pool. Even then only handful of participants represent India because the country lacks the resources and willingness to spend on developing the enough talent pool. Thus, with the billion plus population, India is likely to have few Olympic medals. Despite the large population, poverty actually deters many gifted athletes from the countries like India, Bangladesh or Indonesia to reach their potential. On other hand, Australia has shown a remarkable economic performance for the last 29 years. It holds the record of longest recession free economic growth among the developed world. Hence Australia’s demand for participating and winning the Olympic medals is substantially high. (O'BRIEN, 2012)
When it comes about Olympic spending, it is all about the interactions between demand and supply. The demand is nothing but the marginal propensity to spend on this international mega event Olympics- that how much one country can spend and what is the willingness to pay. One one nation wins and takes home the Olympic medal, it is a measure of huge success. For example, Japan has more money thus it can afford an additional dollar of spending. The demand curve tends to be idiosyncratic here and it makes sense. The implication of such demand curve shows how different countries approach differently to Olympic games. Normal demand degerming factors like the ticket price of the event, hotel accommodation costs, air fare to attend the event, the existing exchange rate, income of the spectators are some of the factors that plays an important role here.
As far as the supply is concerned, it is the marginal cost of Olympics spending. The events are usually held in developed countries as they are better positioned with higher GDP and advanced infrastructure. The total supply chain of the host country involves several sectors, industries and agencies. The supply side factors revolve around several factors that includes total resources available in the country, availability of talent pool, infrastructural facilities like proving accommodation and transportation for such a huge gathering, the strength of hospitality sector. Above all, the cost of hosting and staging such a mega event have skyrocketed but the economic benefits supersedes the cost.
But this year, the world is experiencing an unprecedented public health crisis. The entire world is affected by this crisis and struggling to come out of this pandemic. Hence the supply and demand side factors are changing day by day. International Olympic Committee is working as responsible origination for long. With the consultation of the host county’s organizing committed., respective governments and the agencies IOC has announced to postponed the game in 2021. The postponement of the supply of Tokyo Olympic games is a difficult but no doubt a rational and judicious decision. At the current times, the priority is to protect...