Question

1. Name, and briefly discuss, two fundamental economic factors which have been important drivers of growth in the market for sports in the past.

Answer 1

There are four major factors which shape trends over the long term profits in business.

1. Government.

2. International Transactions.

3. Speculation and Expectation.

4. Supply and Demand.

Among these, government speculation and expectation are two fundamental economic factors which have been important in the market for sports.

1. Government :- Government’s fiscal and monetary policies have profound effect on the sports market. By altering interest rates and providing funds for the sports are the main features of the government policy.

2. Speculation and Expectation :- Both these factors are integral parts of the financial system. These two factors help to shape trends over the past few years for the sports community. So that’s why in present time sports business become one of the biggest business industry.