A Brief Summary on Economic Impact Analysis

Course: Corporate Finance II (FIN427)

A Brief Summary on

Economic Impact Analysis

Submitted to:

Md. Riyashad Ahmed

Assistant Professor

BRAC University

Submitted by:

Imran Hossain Haque

ID – 12304040

Submission Date:

July 27th 2015

Basically, an economic impact analysis is an effective way of demonstrating the economic contribution an organization, industry, or investment makes to a region or a country or the entire globe. It is the impact an economy has over a particular event that has occurred or a project that was done after which the economy either has gotten good or it may not have done that well.

When we look at various events that take place throughout the world, we can see somehow it affects a country’s profit but also on its economy. For example, when Brazil, despite being a poor country hosted the 2014 world cup, the country’s situation changed and shifted towards the improvement of its inhabitants due its decoration, well-recognition towards the whole world and the respect it has earned throughout the various countries around the world. It can be said that once a country hosts a football or cricket world cup, it has a significant effect on the economy especially where that country is good at. However, it can also has a bad impact like Greece where the economy has somehow turned bad in their case. Nevertheless, most often, we notice the goodness of hosting sports.

In Bangladesh, the impact is well-noticed during the budget session. In 2001, there was a study which showed a high demand on cigarettes for families with poor income such as $28 per month which resulted in high taxes thus creating a favorable situation for the government (Ahmed, et al., 2001).

Sometimes, an event can also affect two countries or more. When London Olympics was hosted in England, it created many jobs and opportunities for its inhabitants and hence it created a significant increase in its employment level thus boosting its economy. While England’s economy...