Question

Suppose that a city in your state is trying to attract a sports tournament, which would entail spending a significant amount of money on marketing of the event and other costs that have no intrinsic value to residents of the city. The city leaders argue that hosting the sports tournament will increase commerce activity around the city because of the visitors who will be in town for the tournament. Consequently, they are lobbying you as the state governor to give them grants, which they say (credibly) is the only way they can afford to host the tournament. For your decision, should it matter whether it is a tournament between in-state teams or national teams? Explain.

Answer 1

Answer : As a governor it is not only a tournament between in state teams or national teams, but also it is matter of commercial activity that will be around the host destination too. as no of teams , their players, coaches and others will come along, it will increase the demand for sport goods and allied activity. as the commercial activities are concerned direct demand and derive demand for goods and services will also increase. Demand for transportation, sports quarter or houses,  food & water,  sports goods etc will increase as a direct economical activities apart they will also increase sanitation, proper parking facilities, resource management. they also increase the demand for infrastructure like water and sewage treatment. waste disposal management, electricity. we have to concern a little about congestion, noise and water pollution of the host destination. their safety and security is also a great matter of concern. we will also concern carrying capacity and sustainability of host destination too. i can approve the above proposal as it will increase local economies to certain level, new market , new opportunities will be there. new investment, small startup will gear up. so it will be beneficial for all.