Question

In: Economics

Do you think differences in the exchange rate will keep the NFL from expanding into Europe?...

  • Do you think differences in the exchange rate will keep the NFL from expanding into Europe?
  • What do you think is the best way for a state or local government to subsidize a professional sports stadium?

Solutions

Expert Solution

It can be mentioned that the differences in purchasing power parity should be the one that has to be taken into consideration and this is because of the fact that if the purchasing power parity difference is very huge in Europe and the United States where United States is less expensive and compared to that of Europe, then you can conclude that according to the exchange rate it would be more expensive for you to expand into Europe as a result of which date can be a chance of the league organises dropping the idea and it will motivate to expand if it is the other way where Europe is less expensive than United States. in this way the basis of purchasing power parity in the exchange rate can lead the the decision whether to expand or not.

As far as the the sports stadium is concerned, Noida to build up the customer base initially it is very important to drag the customers to the stadiums and as a result of which the ticket prices should be low as possible and in this way the government can interfere and subsidised the ticket prices so that the sports industry would pick up and grow. Therefore the best way for government interference is subsidizing the tickets and wearing the additional responsibilities


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