This document provides an overview of the relationship between globalization and the events industry, using the FIFA World Cup as a case study. It discusses how globalization has facilitated the growth of the events industry through factors like the rise of multinational corporations, expansion of media coverage, and liberalization of labor markets. It also examines how large-scale cultural events like the World Cup have contributed to the process of globalization by boosting host cities and nations economically and politically. The relationship between globalization and the events industry is described as mutually supportive - they enhance each other.

1. Assignment type: Essay
Detail: Critically evaluate the relationship between globalisation and events industry
Title: Globalisation and the Events Industry: The Mutually Supportive Relationship in Economic
and Political Aspects, with Particular Reference to the FIFA World Cup
Introduction
This essay examines the relationship between globalisation and the events industry from economic
and political perspectives. Giddens (2001) explains globalisation impacts every aspect of the world
society. In this regard, it would be rational that the phenomenon embraces the events industry, as
Ferdinand and Wesner (2012) articulate internationalisation of the industry. Thus, this essay
maintains the view that globalisation and the events industry are mutually supportive relationship.
In other words, globalisation facilitates that the industry grows, and concurrently the industry boosts
that globalisation proceeds. To discuss and evaluate the relationship, the football tournament the
World Cup is taken as a case of the industry. This is because the World Cup, which has been held
quadrennially by The Fédération Internationale de Football Association (FIFA) since 1930, is one of
the largest cultural events in the world (Tomlinson, 2000), and therefore, it plays the significant role
in the current globalisation with economic, social and political implications (Manzenreiter and
Horne, 2002). Hence, this essay firstly reviews the concept of globalisation, and then examines the
interdependent relationship between globalisation and the industry in economic and political
perspectives drawing on the World Cup. Subsequently, the relationship is critically evaluated
focusing on how the relationship impact among actors in the world society, then finally the essay is
concluded.
Review of the Globalisation Concept
Globalisation Theory
Giddens (2001) defines globalisation as a process that enhances worldwide interdependence in
economic, political, cultural and social spheres. In this respect, Giddens (2001) states globalisation
has been largely driven by an emergence of international governance, technological advancement
and a growth of multinational corporations (MNCs) whilst Martel (2010) explains globalisation is
led by economic motive, and in turn it impacts on other aspects of society. Martel (2010) also
claims that when economic globalisation is examined, every economic aspect, such as finance,
trade, production and labour, should be taken into account. When it comes to political globalisation,
key arguments are power, confliction and inequality among nation-states and transnational
organisations which have various scopes such as environment, welfare, religion and sport (Martel,
2010) In this context, Martel (2010) also states that the most significant argument is globalisation
and deterioration of nation-states’ sovereignty owing to these transnational institutions.
Globalisation in the Events Industry
This globalisation theory has been applied and developed in the event industry since 1990s,
according to Giulianotti and Robertson (2007). Ferdinand and Wesner (2012) describe the
development of the industry as internationalisation since it has embraced international activities,
such as tourism, sponsorship and media, with wider agendas, such as cultural differences and global
issues. In this industry, economic motivation of MNCs and nation-states is the significant factor of
globalisation (Ferdinand and Wesner, 2012), as a consequence, globalisation, especially integration
of culture and economy, is accelerated (Getz, 2012).
Globalisation in the Sports Industry
When it comes to the sports industry, Miller, et al (2001) state that sport is the most globalised
popular culture, which attracts audiences and participants beyond language and geographic barriers,
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2. as a pastime and business. Also, Croci and Ammirante (1999) echo the view that commercialisation
of the football industry illustrates that economic force shapes the industry, and also the industry is
the agent of the globalisation process. In this regard, Croci and Ammirante (1999) explain the
economic development of the industry derives from technological advancement of media, and the
collaboration of football, media and sports goods company. In political aspect, Pigman and Rofe
(2014) state that non-governmental sporting organisations, such as FIFA and the International
Olympic Committee, have been becoming the considerably influential actor that can negotiate with
state governments, regional and national sport organisations, MNCs, media, and other international
non-governmental organisations (INGOs). Giulianotti and Robertson (2007) point out the influential
power flows from their political reach as sanctioning sport organisations which govern the registed
nations. For example, FIFA has 209 member nations and territories internationally, which surpasses
the number of the association nations of the United Nations (UN) at 191 members (Bar-On, 2014).
Economic Globalisation and the World Cup
As Martel (2010) mentions economic globalisation includes multiple aspects, the relationship
between globalisation and the World Cup would be explained with key economic globalisation
actors as follows: MNCs, global cities, media, and the free labour market. Also, as Martel (2010)
explains globalisation is driven by economic factors, and in turn, impacts economically, this binary
relationship is taken into account in following examinations.
Establishment of MNCs
MNCs are the crucial factor of economic globalisation since they operate globally and pursue
world-scale advancement as if they are not confined by national boundaries (Robins, 1997).
Therefore, from the marketing communication point of view, event sponsorship would be one of
suitable approach to them. This is because event sponsorship allows sponsors to communicate
locally on site as well as internationally via media (Bowdin, et al, 2011). Using event sponsorship,
sponsors can promote their messages to billions of people (Horne and Manzenreiter, 2006), who are
emotionally and profoundly connected with the events (Cornwell, 2008). Cornwell (2008) also
acknowledges that event sponsorship is mainstream marketing communication strategy, and
highlights spectator sports and art events are the most growing sectors. Macintosh, et al (2012)
stress especially mega-events are likely exploited by global companies since both of them have the
global focus. Concerning the World Cup, in addition to continuous FIFA’s partners, Adidas, Sony,
Visa, Emirates, Coca-Cola and Hyundai-Kia Motors, MTN, First National Bank, Continental Tyres,
Castrol, McDonalds, Satyam and Telkom contracted as 2014 World Cup sponsors. The formation of
the sponsors is typical as all of them are MNCs and only Telkom originate from South Africa (Desai
and Vahed, 2010).
On the other hand, the World Cup could underpin these MNCs through sponsorship.
Generally, sponsorship is corporate commercial investment to properties in return for enhancement
of product and corporate brand (Skinner and Rukavina, 2003). In this regard, according to Nufer
and Bühler (2010), several of 2006 World Cup sponsors, namely Adidas, Coca-Cola and
MacDonald’s, were positively recognised by those who follows the World Cup than those who do
not, and Coca-Cola, McDonald’s and Yahoo! significantly boosted their corporate image after the
World Cup. Furthermore, the most salient point of FIFA sponsorship would be that the sponsorship
is strictly categorised to protect sponsorship advantage, avoiding overlapping of product and service
types, such as alcohol drink, car, airline, and others (Desai and Vahed, 2010). Thus, it could be
obvious that sponsors can gain competitive advantage over rival companies. Szmydke and
Brasileiro (2014) explain that Adidas has held the partner rights of FIFA since 1970s, and this year,,
extended the contract until 2030 aiming to exclude Nike, and that Coca-Cola has taken same
strategy against PepsiCo. As Weszka (2014) state that key functions of brand are to be identified
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3. and to be differentiated from others, this exclusive and global scale sponsorship program of the
World Cup could be advantageous for MNCs.
Emergence of Global Cities
The globalised economy underpinned by free market encourages competition among regions,
nations and cities (Robins, 1997), and the most explicit case is exemplified by Sassen (2001) as the
global cities, which is the cities in which international finance, trade and production thrive, such as
New York, London, Tokyo, Frankfurt, and Paris, and moreover, potentially Hong Kong and São
Paulo. Amidst these circumstance, Foley, et al (2012) acknowledge that events have been used by
governments to showcase their cities and countries to the world. This is because hosting mega-
events can improve public awareness and image, which become the competitive marketing
advantage to the host nations and cities (Bowdin, et al, 2011). Especially, mega-events can impact
tourism and inward investment in long-term perspective (Carlsen and Taylor, 2003). Thus, global
destination competition ignites nations to invest in events. For instance, England, Russia,
Netherlands and Belgium, and Spain and Portugal bid for 2018 World Cup, and Australia, Japan,
South Korea, Qatar, the United States bid for 2022 World Cup (FIFA, 2010). De Nooij, et al (2011)
investigate Netherlands and Belgium aimed to pursue image enhancement, tourism and economy
boost. Likewise, examination of American bid by Coates (2010) shows government’s aim of
economic and tourism impacts.
Conversely, it could be also obvious that the World Cup assists global cities. Weszka (2014)
points out that host nation’s name has been officially incorporated into every FIFA World Cup’s
official name and emblem since 2002, which clearly improves linkage between the event and
destination in the destination management point of view, especially in terms of marketing leverage.
Hence, the World Cup is certainly an opportunity for host cities to diffuse its name through
commentary, advertisement and merchandisement as a tangible asset (Weszka, 2014). For instance,
after uncover of the official logo of the 2014 World Cup Brazil in 2010, the Brazilian Tourist Board
launched a tourism campaign Brazil is Calling You globally via multiple media to enhance visitor
numbers (Weszka, 2014). Furthermore, the World Cup can provide intangible benefit to the
destinations. Host cities and nations can leverage the mega-events’ authenticity into destinations,
and generate positive perception among the public, especially potential tourists and investors
(Smith, 2005: Smith and Fox, 2007). For instance, according to Desai and Vahed (2010), South
African president Thao Mbeki proclaimed that hosting the 2010 World Cup is the symbol of the
renaissance of South Africa as well as the African Continent, which allows them to gain
international presence.
Expansion of Media Coverage
Media play vital role for the development of the World Cup, firstly as a fund provider through
broadcasting rights, and secondly as a agent of football diffusion through their expanding coverage,
and finally, as a mediator of sponsorchip from commercial enterprises (Hare, 1998). In terms of
broadcasting rights, Sugden and Tomlinson (1998) reveal that the rights of the 1998 World Cup was
dealt with European Broadcasting Union and ABC Television at 230 million Swiss Francs, and also
the rights of the the 2002 and 2006 World Cup was agreed with International Sport and Leisure and
Kirch at £1.45 billion. This means the value of the rights grown 10 times in 8 years. When it comes
to media expansion, neo-liberalism deregulation and privatisation of media led the emergence of
global media (McChesney, 2001), which is a media corporation that operates multiple media
services with diversified contents in various regions in the world (Arsenault and Castells, 2008).
Also, McChesney (2001) points out that the global media formation utterly fits advertising from
MNCs since the formation allows global companies to promote their commodified products via
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4. global media. Thus, this would implicate media expansion is also significantly relevant to
prominence of MNCs.
Conversely, the World Cup has enhanced globalisation in media. Fundamentally, sport is a
popular programme in media globally (Bernstein and Blain, 2001). For instance, although the 1994
World Cup attracted 0.31 billion viewers across 188 countries, according to Sugden and Tomlinson
(1998), FIFA (2014a) report that the 2010 World Cup attracted 3.2 billion viewer worldwide, and
2014 World Cup is expected to surpass the number. Amidst this circumstance, exclusive broadcast
rights can spontaneously enhance global media system since only capitalised global media
companies can afford remarkably high costs, which consequently leads oligopolisation by global
media (Law, et al, 2002). Taking the 2002 World Cup and Japan as the case, Japanese broadcaster
SKY PerfecTV, which is in a global media conglomerate News Corporation group, is only media
that covers all football matches at the event (Manzenreiter and Horne, 2002).
Liberalisation of Labour Market
Football players are a labour force of football industry, therefore, movement of labour, that is
football migration, has been one of the key topics among scholars (Taylor, 2006). According to
Taylor (2006), although he players market is globalised with the formation of Europe in centre and
other regions in peripheral, 1,478 international transfers were requested in 2000. In this regard,
Milanovic (2005) claims that quality of the World Cup is underpinned by high quality players,
which benefit from global free circulation of labour. Although skilled players from all over the
world are concentrated and further trained in European football leaguer, they represent their
countries at the World Cup, which produces high quality and balanced game at the tournament.
Taking Africa as a case, although it is one of the continets that domestic football league is
underdeveloped, at least 730 talented African playeres belonged to European football clubs as of the
end of 2007 (Desai and Vahed, 2010).
On the other hand, football players usually belong to football clubs domestically or
internationally, and they are released to attend the World Cup when it is held (Milanovic, 2005).
Therefore, it would be reasonable that the World Cup highlights attracting players and consequently
enhances further free movement of labours. In fact, although Japan national team were once
comprised by all players who belong domestic football club at 1998 World Cup, having experience
5 consecutive appearance on the World Cup, the team consists of more than half the team plays in
oversea club such as in England at 2014 World Cup, according to FIFA (2014b). Moreover, these
trend might impact lower level of the industry, that is national leagues. Mentioning that at 2002
World Cup, 4 out of 23 players belong oversea club in Japanese national team, Takahashi and Horne
(2004) acknowledge that 71 percent of domestic league players answered to national newspaper’s
survey in 2000 that they are willing to play abroad in the future.
Political Globalisation and the World Cup
Although Murray and Pigman (2014) claims a political power of FIFA, this view appears to be
underpinned by other literature. Weszka (2014) explains that although FIFA’s political power is
derived from its political reach, it is led by FIFA’s development in football and other fields. For
example, regarding football, the numbers of participants in the World Cup has increased from 13 in
1930 to 32 today (Weszka, 2014). Also, in other areas, FIFA has addressed global agendas such as
education, health, development and peace from 1990s (Tomlinson, 2000).
At international scale, the World Cup would have political reach, and impact international
relations, specifically diplomacy aspect. For example, FIFA claims that football took China to world
economic and politic arena, and co-host of 2002 World Cup benefited both South Korea and Japan
government for amendment of national relationship (Tomlinson, 2000). In fact, this initiative of the
co-host encourages subsequent political actions, such as Korean government’s deregulation of
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5. Japanese popular culture, and Japanese Emperor’s official visit to South Korea for the World Cup
opening ceremony (Manzenreiter and Horne, 2002).
In national level, the World Cup appeares to be seen as a catalyst of national development
for tangible and intangible outcome. For example, Horne (2004) illustrates that Japanese
government, as the host country of 2002 World Cup, had objectives, which are internationally,
image enhancement by hosting the first ever World Cup held in Asia, and nationally, regeneration of
peripheral regions by constructing sports related infrastructures and by promoting active and
healthy lifestyle through the event.
Also, in grassroots level, the World Cup would adresses global issues. FIFA has collaborated
with United Nations and its institutions, which includes UNICEF, UNESCO, WHO and UNDCP,
since 1999, has promoted human rights and health (FIFA, 1999). For example, Say Yes for Children
campaign is launched with 2002 World Cup to promote children’s rights (FIFA, 2001), and also
Unite for Children, Unite for Peace campaign was established with 2006 World Cup to advocate the
value of peace and tolerance (FIFA, 2006). Furthermore, the partnership had expanded to initiatives
with host government at 2010 and 2014 World Cup regarding children’s rights (UNICEF, 2014).
Evaluation
Drawing from the the World Cup, the examination above shows the relationship that economic
globalisation drives the World Cup, and conversely the World Cup enhances economic and political
globalisation. This would clearly echo the view of Martel (2010), which is that globalisation
primarily comes from economic motives, and consequently it impacts other aspects of the world.
Thus, in the following evaluation, to whom and how the relationship impacts is drawn. Also,
generalisation from the World Cup to the events industry context is explored by utilising a
stakeholders typology. In this regard, Bowdin, et al (2011) provides the classification of audience,
host organisation, host community, co-workers, media, and sponsors.
FIFA as a Host Organisation
FIFA could clearly benefit from the relationship economically and politically. In economic view
points, sponsorship from highly profiled MNCs and broadcasting fee from global media
significantly contribute FIFA’s finance. Also, in political perspective, FIFA outreaches wider policy
arenas from international relations, national development to globally shared issues such as human
rights and peace. Murray and Pigman (2014) see that this prosperity stems from FIFA’s privilege as
only governing body of the one athletic. In this regard, for generarisation, it would be reasonable to
mention that FIFA is a sanctioning body rather than managerial organisation of the event in a host
organisation, as Horne (2004) describes the World Cup is installed by local organising committee.
MNCs as Sponsors
As examination shows, MNCs could be economically advantageous among the relationship, since
they can utilise the World Cup for their sales promotion and branding globally, in host counties as
well as via media, excluding competitors. In this respect, Croci and Ammirante (1999) claim that
sporting events and promotions are seamless, as the 1994 World Cup United States might assisted
Adidas to promote their products in the country where Nike and Reebok had dominated previously.
Also, Szmydke and Brasileiro (2014) point out that Adidas achieved the highest sales at over $2.72
billion owing to the 2014 World Cup in Brazil, where the fourth largest sports wear market in the
world exists. Thus, the relationship can be beneficial to event sponsors.
Global Cities as a Host Community
In economic point of view, Global cities can benefit from the relationship since the World Cup is
seen as an opportunity for destination marketing purpose, specifically aiming future tourism and
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6. potential inward investment. It would be also understandable that the image is brought by global
expansion of media coverage. Thus, the relationship could be beneficial host cities, especially the
one aims to become global city amidst global city competition.
Global Media
The examination implies global media can benefit from the relationship. This is because
broadcasting of the World Cup programme is significantly popular among the public across the
world, and exclusiveness of the rights can provide the competitive advantage against rivals. As Law,
et al (2002) point out, world sports media market has been oligopolised by handful media
conglomerates, namely Disney, News Corporation, AOL-Time Warner, Bertelsmann and Vivendi-
Universal. For example, News Corporation is the most prominent media conglomerate that operates
satellite broadcasting services globally from Asia, Europe to South America (McChesney, 2001).
Football Players as Co-Workers
The relationship can positively affect labour market, namely football players in the examination’s
context. Since world labour market has liberalized, movement of labour has been legitimated.
Amidst this backdrop, the World Cup has played a role as a showcasing opportunity, today players
can move to better condition of labour.
Conclusion
This essay examined the relationship between globalisation and the events industry in economic and
political aspects as interrelationship drawing on the FIFA World Cup, in other words, globalisation
facilitates the World Cup thrives, and the World Cup boosts further globalisation. This echoes the
view of Martel (2010), which describes that globalisation is primarily driven by economic motives,
and consequently various aspects of the society are affected by the globalisation. In this context,
emergence of MNCs, global city competition, global media expansion, and free football labour
market were examined in terms of economic actors as well as outcomes. Also, political aspect of
FIFA as a INGO was then scrutinised. As a conclusion, these would describe the binary connected
relationship of globalisation and the World Cup. In terms of the event industry context, the
evaluation would be generalised as host organisation, sponsors, host community, media, and co-
workers are potential recipients of the benefits derives from the interrelationship between
globalisation and the event industry.
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