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The Economic Perspective of the 2018 World Cup
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The Economic Perspective of the 2018 World Cup
Russia hosted an international competition, the 2018 FIFA World Cup. With its global fan
base and financial influence, the FIFA World Cup was more than just a sporting event; it was a
significant social and economic phenomenon. For the host nation, in particular, the competition
is a barometer of its sporting excellence and an exceptional opportunity to display its economic
and social strength. The Russian government used the World Cup as an infusion to accomplish
many target rates, including GDP, inflation, and the current account, all of which improved
significantly as a result of the tournament. This paper uses the circular flow model, expenditure
multiplier, and business cycle to elaborate on the economic perspective of the 2018 FIFA World
Cup.
Russia's official investment of US$15 billion into the country to host the 2018 FIFA
World Cup makes it the most expensive sporting events ever. This includes the construction or
renovation of 12 stadiums, the installation of new terminals at 11 airports, and renovation of
hotels, hospitals, and utility facilities (Ridgwell, 2018). Despite this, private sector investments
like those made by FIFA and other advertising corporations have helped improve Russia's
infrastructure (Srivastava, 2018). Russia has seen a growth in income that may be attributed to
the expenditure multiplier. Therefore the government's investment and spending are viewed as
independent spending. A spending multiplier occurs when discretionary expenditure leads to a
rise in overall induced consumption. Here, the Russian government has raised investment in
infrastructure by US$ 15 billion in preparation for the World Cup (Ridgwell, 2018). There is a
US$15 billion boost in revenue for the industry as a result of this investment in ageing
infrastructure. The subsequent rise in stimulated consumption of infrastructures is attributed to
the $15 billion increase in income. Because of this, there was a more significant rise in the
This study source was downloaded by 100000856941565 from CourseHero.com on 11-22-2022 04:59:49 GMT -
https://www.coursehero.com/file/175319236/The-Economic-Perspective-2018-World-
The Economic Perspective of the 2018 World Cup
Student’s Name
Institution
Course
Instructor
Date
This study source was downloaded by 100000856941565 from CourseHero.com on 11-22-2022 04:59:49 GMT -
https://www.coursehero.com/file/175319236/The-Economic-Perspective-2018-World-
, 2
The Economic Perspective of the 2018 World Cup
Russia hosted an international competition, the 2018 FIFA World Cup. With its global fan
base and financial influence, the FIFA World Cup was more than just a sporting event; it was a
significant social and economic phenomenon. For the host nation, in particular, the competition
is a barometer of its sporting excellence and an exceptional opportunity to display its economic
and social strength. The Russian government used the World Cup as an infusion to accomplish
many target rates, including GDP, inflation, and the current account, all of which improved
significantly as a result of the tournament. This paper uses the circular flow model, expenditure
multiplier, and business cycle to elaborate on the economic perspective of the 2018 FIFA World
Cup.
Russia's official investment of US$15 billion into the country to host the 2018 FIFA
World Cup makes it the most expensive sporting events ever. This includes the construction or
renovation of 12 stadiums, the installation of new terminals at 11 airports, and renovation of
hotels, hospitals, and utility facilities (Ridgwell, 2018). Despite this, private sector investments
like those made by FIFA and other advertising corporations have helped improve Russia's
infrastructure (Srivastava, 2018). Russia has seen a growth in income that may be attributed to
the expenditure multiplier. Therefore the government's investment and spending are viewed as
independent spending. A spending multiplier occurs when discretionary expenditure leads to a
rise in overall induced consumption. Here, the Russian government has raised investment in
infrastructure by US$ 15 billion in preparation for the World Cup (Ridgwell, 2018). There is a
US$15 billion boost in revenue for the industry as a result of this investment in ageing
infrastructure. The subsequent rise in stimulated consumption of infrastructures is attributed to
the $15 billion increase in income. Because of this, there was a more significant rise in the
This study source was downloaded by 100000856941565 from CourseHero.com on 11-22-2022 04:59:49 GMT -
https://www.coursehero.com/file/175319236/The-Economic-Perspective-2018-World-
