The 2016 Olympic Games In Brazil Commerce Essay

During the decade 2010 Brazil will have a possibility to show its’ splendor, talent and joy of life for the entire world. First world class events will take place during the year 2014, when Brazil will host the football World Cup. The final of the World Cup to be played in Rio de Janeiro, at the world’s largest stadium, called Maracanã. Two years later, in 2016, the Olympic Games are going to be prearranged in the splendid city of Rio de Janeiro. Both the World Cup and the Olympic Games are going to be big challenges for Brazil, just like they would be for any other country organizing two events of this level within two years (Rio2016.org, 2009) A lot of work has to be complete, and the future improvements of the infrastructure are going to be settlement both for Brazilians and for the tourists as well. The events have become a highly lucrative entertainment venue that gives nations and corporations alike promote themselves to the world and will bring a lot of publicity for Brazil. These mega-events have an impact that for the host nation, the heart of these events is the economic implications for growth, including the endorsement of continued social and economic development (Hazard, 2008). Following this point of view, this research intends to analyze the marginal benefits of hosting two mega events as 2014 FIFA World Cup and the 2016 Olympic Games in Brazil: A case of study focusing on BRIC Nation.

Statement of the Problem

What are the marginal benefits of hosting two mega events as 2014 FIFA World Cup and the 2016 Olympic Games in Brazil, Focusing on BRIC Nation?

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Purpose of the Study

The overseas and household investments in Brazil and Rio de Janeiro have already begun with just four years lasting for the World Cup and six for the Olympic Games. Brazil, being the fifth-largest country in the world and an important economy in South America, is under demands to successfully host these events (The Economist, 2010).

These two Mega-Events have the prospective to either hold back the economic growth or boost a city/nation/region towards extra social development and economic growth. The host nation accepts the household tasks of the extraordinary event with full consciousness of the long term costs they may incur. However, the scale of possible long-term benefits, particularly for a third world country like Brazil, makes the investment more eye-catching. Another measure of benefits is the visibility the nation has and acuity to the world public (EconomicsHelp.org, 2007).

With comprehensive international exposure, this study aims to identify which are the challenges and barriers faced by Brazil on hosting these foremost international sport events, additionally the lack of infrastructure. In addition, will analyze a systematic guide to the management issues and practical problems that sports managers must address to ensure financial, sporting and ethical success. Covering the economic, social, community and environmental issues.

Literature Review

The correlation with Mega-event

The Olympic Games and the World Cup  associate with the concept of mega-events, which are sporting or other events that: Involve upgrades to transportation and communication links. This deal leaves a lasting legacy for the whole economy. Better transport links reduces jamming and helps to improve effectiveness for local business. It can help boost productivity capacity and reallocate average supply to the right. (EconomicsHelp.org, 2007)

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The economy experiences improvements to infrastructure (transportation and housing), visibility overseas direct investment (FDI), enlarged tourism, job creation and other forms of economic expansion that it will be discuss in more depth in the analysis of the 2014 World Cup and Rio 2016 games. Events such as the Olympics and the World Cup require billions of dollars in capital investment in diverse forms of planning and infrastructure. These investments follow the “public partnership model” where federal, state, city and private investment account for the capital flow necessary to build the undying and provisional athletic venues, media headquarters and housing units (Rio2016.org, 2009).

Brazil and Rio de Janeiro

“Brazil’s steady economic policies and growing domestic market means that it has been less affected by the world economic brake, so it has come to be seen as something of a safe haven for investors.” This point’s out two very significant attributes of Brazil’s economy emphasized in it does propose. First, the nation was for the most part unaffected by the recession of 2008 and 2009, which provides for an established microeconomic scenario. Second, this has translated into a awareness of a stable investment whereby Brazil, as a part of BRIC, (grouping of the four most established/profitable rising nations for FDI) has improved economic and social safety and stability. This could enlarge incentives for large scale property investments in the long term. (Reuters, 2009)

Analysis of Brazil’s Preparation for 2014 and 2016

The government of Brazil is about to spend almost $880 billion on infrastructure linked projects leading to the 2014 World Cup and 2016 Olympic Games. Added to the $280 billion that has already been invested since 2007, President Luiz Inacio Lula da Silva’s recent declaration that $878 billion would be used up between now and the time of the Rio Olympics has given a major enhance to the country’s arrangements to host two of the world’s biggest sporting events (GamesBids.com).

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Hundreds of thousands of athletes and viewers from all corners of the globe will be downward on Brazil between 2014 and 2016 and this up-and-coming world power is more than ready to take its place in the attention. At a ceremony at the Brazilian overseas affairs ministry, President Luiz Inacio Lula da Silva announced a agenda of massive airport investment in time for the 2014 World Cup. The funds will be invested in the airports of the twelve host cities, Rio de Janeiro, Sao Paulo, Belo Horizonte, Brasilia, Cuiaba, Curitiba, Fortaleza, Manaus, Porto Alegre, Salvador, Recife and Natal. The Brazilian government anticipates the improvements will be finalized between June 2013 and April 2014, well in move on of the arrival of World Cup visitors (Reuters, 2009).

The statement was made in concurrence with the official launch of the tender process for the country’s first bullet train scheme. Both of these infrastructure initiatives will release any doubts regarding Brazil’s willingness for the World Cup in 2014 (Rio2016.org).

The bullet train’s area is home to some 40,000,000 people, 20% of the Brazilian population, with firms and industries that mutually produce a 3rd of Brazils GDP. An expansion to Campinas, seventy kilometers from Sao Paulo has been planned with the intention of providing access to the heart of Brazil’s wealthiest and prolific manufacturing and agricultural area (Simpson, 2009).

Many countries have uttered an interest in working with the Brazilian government on these projects as well as European, Chinese and Japanese infrastructure companies. The Brazilian government plans to preserve a controlling stake in any joint ventures (Reuters, 2009).

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All of the main infrastructure facilities are planned to donate socially and environmentally for the Brazilian people for many years after the 2014 World Cup and the 2016 Olympic Games (Reuters, 2009).

Objectives of the Research

Identify the challenges for Brazil on Hosting the World Cup and Olympic Games.

Identify the necessity of adaptation and generation of infrastructure.

Identify the main long-term impacts of mega-events, such as the World Cup and the Olympics.

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Research Methodology

Qualitative research is essentially one which seeks to understand a specific phenomenon in depth. Instead of statistics, standards and other generalizations, the qualitative work with descriptions, comparisons and interpretations. Lee, Nick, Lings, Ian. (2008)

Gummersson (1991) suggests the existence of at least three different possibilities offered for qualitative research: documentary research, the case of study and ethnography.

In relation to this research, it will be employed the method of documentary research and case study.

The desk research is made by examination of materials that have not yet received an analytical treatment, or may be reviewed with a view to a new interpretation or complementary. Can provide useful basis for other types of qualitative study and allows the creativity of the researcher directs the research for differentiated approaches. Saunders, Lewis, Thornhill, (2009).

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The objective of the case study, in turn, is the thorough analysis of a study unit. According to Yin, Robert K. (1984), aims to detailed examination of an environment, a subject or a particular situation. Widely used in research administration has become the preferred mode of those who seek to know how and why certain phenomena analyzed are present and make sense only within a specific context.

For the purposes of this investigation the long-term impact of mega-events, such as the World Cup and the Olympics on past nations will allow the generalization for all similar information and will present us their experience to deal with the phenomena in discussion and with data related to the marginal benefits of hosting two mega events as 2014 FIFA World Cup and the 2016 Olympic Games in Brazil.

Analysis of data

There are two attitudes commonly found in the analysis of data (Ghauri, 2005). The positivist orientation is related to the concept that all data can be categorized and quantifies through the codification and refinement. On the other hand, the phenomenological attitude defends that individual’s cases are meaningful by themselves without the necessity of categorizing them.

To start the analysis of the data collected, the approach of phenomenological attitude will be applied. Lee and Lings (2004:p.236) define this approach related to the ‘process of selecting, focusing, simplifying, abstracting and transforming the data’.

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According to this research, the content analysis of data will be using the traditional textual materials written, such as texts that have been made for any other purpose, such as newspapers or memoranda of corporations, academic journals, correlated dissertations, books etc. Velde, Jansen, Nelson (2004)

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LITERATURE SEARCHING

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Gantt chart’s model taken form Krathwohl, Smith. Syracuse University Press, 2005

Reference List

“Cost and benefits of the Olympics.” EconomicsHelp.org. November 8, 2007

David R. Krathwohl, Nick L. Smith. (2005) Syracuse University Press.

Gummersson, Evert. Qualitative Methods in Management Research. (1991). Sage Publications Inc.

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Leah Hazard. “The Olympics: an economic double edged sword.” GlobalEnvision.com. August 18, 2008

Lee, Nick, Lings, Ian. Doing Business Research: a guide to theory and practice. (2008) Sage Publications LTD.

Leo Simpson. “Infrastructure Investments for the Olympics Rio 2016.” Mondaq.com. November 2, 2009

Luciana Lopez. “Rio 2016 Olympics could help economy, ruling party.” Reuters. October 2, 2009

“News: Rio gets a new gym for training new talent.” Rio2016.com. October 29, 2009

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“President Lula’s Remarks Highlight Rio 2016.” Olympic Bid. GamesBids.com. October, 2, 2009

“Press Release: Rio 2016 sets record in early start to work on organization.” Rio2016.com, November 9, 2009

“Press Release: Rio 2016 to build on Olympic host cities’ experience.” Rio2016.org. October 16, 2009

“Rio is Ready.” Rio2016.org. November 9, 2009

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Staff. “Rio 2016 Reveals “Compact” Bid Plan.” GamesBids.com. November 10, 2009

Saunders, M. Lewis, P., Thornhill, A. Research Methods for Business Students, (2009) FT Prentice-Hall

The world turned upside down. Apr 15th (2010). The Economist

Velde, Mandy van der, Jansen, Paul and Anderson, Nelson. Guide to Management Research Methods. (2004) Blackwell Publishing Ltd.

Yin, Robert K. Case Study Research – Design and methods. Volume 5. (1984). California, Sage Publications.

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