While some economists are skeptical about the economic benefits of hosting the Olympic Games, emphasizing that such "mega-events" often have large costs, hosting (or even bidding for) the Olympics appears to increase the host country's exports, as the host or candidate country sends a signal about trade openness when bidding to host the Games. Moreover, research suggests that hosting the Summer Olympics has a strong positive effect on the
philanthropic contributions of corporations headquartered in the host city, which seems to benefit the local nonprofit sector. This positive effect begins in the years leading up to the Games and might persist for several years afterwards, although not permanently. This finding suggests that hosting the Olympics might create opportunities for cities to influence local corporations in ways that benefit the local nonprofit sector and civil society. The Games have also had significant negative effects on host communities; for example, the Centre on Housing Rights and Evictions reports that the Olympics displaced more than two million people over two decades, often disproportionately affecting disadvantaged groups.
Globalization has continually increased international competition in sports. The
FIFA World Cup, for example, is the world's most widely viewed sporting event; an estimated 700 million people watched the final match of the
2010 FIFA World Cup held in
South Africa. According to a 2011 A.T. Kearney study of sports teams, leagues and federations, the global sports industry is worth between €350 billion and €450 billion (
US$480-$620 billion). This includes infrastructure construction, sporting goods, licensed products and live sports events. Another possibility was that sports economics is defined by the application of price or decision theory. For example, a study that examines sport using incentives and objective functions or tries to understand, explain, or predict choices in a sport context is sports economics. == Olympic Games factor of the globalization of sports ==