Author Archives: Luz Cuentas

Welcome to Trinance

I am delighted to welcome you all to a new segment at Trinity Business Review, Trinance. This segment aims to introduce you to global markets and the general world of finance. Whether it is your first time reading about finance or you are a more seasoned reader, I am sure you will gain new insights you had not known previously.

Trinance will explore recent market trends and career opportunities as well as including student, alumni, and recruiter commentary. Finance is a bit odd in the sense that it tends to have a lot of acronyms and many words for the same thing, but you will soon come to tell which ones are the same. To make matters easier, I have compiled a list of five financial terms you should know and additional resources to help you keep up with the markets.

1. Time Value of Money

This concept means that a lump sum amount of money is worth more now than at a later point in the future. This is because said money has the opportunity to grow until you reach that point later in the future, as opposed to receiving the same lump sum later.

Of course, money can only grow through investing which will compound over time, which leads us to our next term.

2. Compounding

This process occurs when an investment’s appreciation (increase in price) is reinvested again. This appreciation can occur through interest accumulation (say interest earned on a savings account in a bank or other financial instruments). This process can repeat itself an unlimited number of times so it can lead to exponential growth over a sustained period.

Albert Einstein is reported to have said that compound interest is “the eighth wonder of the world”. The idea with compounding is to ensure your investment outpaces inflation which again leads us to our next term quite nicely.

3. Inflation

A very topical macroeconomic indicator right now, inflation is the increase in prices observed across the economy; this decreases the purchasing power of local currency at a specific moment in time. Most developed countries’ central banks set an inflation target of 2% per annum, including the European Central Bank, the Federal Reserve (U.S. Central Bank), the Bank of England and the Bank of Japan.

However, inflation is not as bad as it sounds and is actually healthy for the economic growth. Very low or negative inflation (deflation) would lead to consumers buying less because they anticipate falling prices, which make businesses earn less, which in turn may end up dismissing employees or cutting salaries to make up for these losses. All of this can lead to an alarming series of events very quickly as seen in the Great Depression of the 1930s and most recently in the Global Financial Crisis of 2008-09. A small but steady increase in inflation causes the opposite of the deflationary effects mentioned above and keeps the economy ticking.

4. Debt

A sum of borrowed capital due to be repaid before a specific point in time. Regular interest repayments are also expected to be paid before the principal (lump sum borrowed) is paid back. Debt can be taken out by people, businesses and countries so these types of debt differ greatly. 

Many companies like to take out debt because it is tax-deductible. This means that it can ask the relevant tax authority for a tax deduction for that fiscal year because it has been responsible in repaying the interest on that debt. However, too much debt can also quickly spiral out of control; for example, Hertz, a car rental company, filed for bankruptcy in 2020 due to their inability to pay back debt worth $19 billion. It has managed to restructure its debt since then, but not every company who goes bankrupt due to excessive debt is that lucky.

5. Equity

Equity is the capital that belongs to the company’s owners and would be given to them if all the assets and debts were sold and repaid, respectively. This would occur if the company went into bankruptcy and had to be liquidated to be sold off to its debtors and creditors.

In accounting, this is equal to total assets minus total liabilities on the balance sheet. This capital is used for financing activities such as investing in a new research and development (R&D) project or purchasing new assets. Retained earnings (profits kept back from the previous accounting period) is another component of equity that may be used for future operations or to pay dividends to shareholders (company owners).

Resources for Further Learning

There are many fantastic resources to keep up with finance and as a Trinity student you get access to some of the world’s best financial journalism. The Financial Times and The Economist are free to read for Trinity students so you can log on to Stella Search to read The Economist and sign up to TCD’s FT license here.


  • FT News Briefing: fantastic summary of business news (10 minutes at most)
  • Numbers by Barrons: interesting markets recap by numbers (5 minutes at most)
  • The Economist Morning Briefing: current affairs round up (5 minutes at most)
  • Trinity SMF Podcast: great interviews with business leaders organised by Trinity’s very own SMF (1 hour at most)


  • Bloomberg Five Things You Need to Know to Start Your Day: daily morning setup
  • Bloomberg The Weekly Fix: the bond market
  • FT Unhedged: recent market trends
  • FT Due Diligence: mergers and acquisitions
  • FT Moral Money: sustainable investing

2022 FTxBocconi Talent Challenge

I would also recommend applying for the 2022 FTxBocconi Talent Challenge. I took part in the 2021 edition and found it brilliant. It is a fantastic competition that allows you to meet some of the FT’s best journalists and Bocconi’s leading business academics in the FT HQ that I recently had the chance to visit! You can apply here before the 24th November and feel free to get in touch with me with any questions.

The Globalisation of Sports Competitions

What is globalisation?

To begin, what exactly is globalisation? It is a commonly used term but it is worth noting that it also delves into other disciplines, not just business. When asked, different individuals give equally different interpretations of their definitions. Taking it from the business point of view, we can consider it to be the concept of treating the world as a single, integrated marketplace. However, if we asked an economist, they could say globalisation is more or less an expansion of global trade. In contrast, a sociologist might interpret globalisation as the sociocultural changes which stem from the international migration of both people and information. A political scientist could potentially define globalisation as the integration of laws which govern the interaction of states and global institutions. Given these differences in the definition of globalisation across different disciplines, understanding if sports have become truly globalised is not an easy task. 


Without a doubt, international sports competitions have a long history. The first international sports match was a cricket match between the U.S.A. and Canada in 1844. The first international sports competition was the first modern Summer Olympic Games in Athens in 1896. However, its origins date back to Ancient Greece. The ancient Olympics do not count as international though because only men from Ancient Greek city-states and kingdoms were allowed to compete. It is worth noting that many early examples of international sports competitions took place in generally wealthier European or American countries and cities. Keeping the Summer Olympic Games example, it can also be observed that the subsequent seven editions took place in other European cities with the exception of the 1904 St. Louis Olympics in the U.S.A.

In recent years, there has been a noticeable shift in hosting rights to international sporting events. This can be observed through the 2010 FIFA World Cup, 2018 Winter Olympic Games and 2019 Rugby World Cup. 

All of these events had one thing in common – they were the first of their kind to be hosted in their respective countries and/or continents. The 2010 FIFA World Cup was the first to take place in the African continent. That summer, South Africa hosted 32 international teams and their fans. Last year, Japan became the first Asian country to host a Rugby Union World Cup. They hosted 20 international teams and their supporters over the September-November period. PyeongChang also became the first South Korean city to host the Winter Olympic Games in 2018. Hence, we can clearly see the more recent globalised trend in the hosting rights of large sports competitions.


Naturally, we expect a diversification in host nations to possess a myriad of benefits, and they do, of course. Usually, these large-scale sports competitions take place in equally large cities. Hosting such a popular event and experiencing a large influx of foreign tourists can have a significantly positive impact on the host nation’s economy. During their stay, visitors pay to be spectators at the event but also stay in local accommodation and cover their necessary daily expenses. A Deloitte report estimates that Rugby World Cup visitors alone can directly contribute between £200-810m GBP into the host nation’s economy. Large companies, especially in the hospitality industry, certainly benefit but local, small and family-run businesses also benefit from such a large inflow of tourists. 

FIFA reports that during the 2018 FIFA World Cup in Russia, 3.4 million foreign tourists visited all eleven host cities. That is a remarkably large number, without counting the number of tourists that went to less than the eleven Russian host cities and the 3.4 million Russian fans who travelled to all eleven host cities as well. Another benefit would also be the increased cultural awareness and cohesion that is fostered at these types of events as locals get to meet other foreign visitors and vice versa. In this aspect, sport really does become more globalised both in a sociological aspect but also commercially as event tickets are sold to people from all over the world. Taking the example of the 2019 Rugby World Cup, SportsPro reported that the final between England and South Africa saw a record attendance of 70,103. Official ticket prices sold for maximum 100,000 Japanese Yen which is roughly $900 USD, without counting resold tickets. Two Category A tickets even sold for an estimated $31,700 USD on a ticket reselling website.

Host nations can also potentially exploit a boost in their international rankings, if they defy expectations and perform above what was expected of them. Japan, as host nation of last year’s Rugby World Cup is a great example of this. Japan has qualified for every edition of the tournament since 1987 but did not experience great success. In all of the editions before 2019, they were always knocked out of the competition at the pool stage. Japan’s ranking in rugby union increased slightly after the competition. They went from ninth to eighth best in the world. A relatively successful host nation who surprises their fellow competitors can inspire other countries as well. Why? Seeing another country with little experience in both hosting large sports events and competing at the highest level in the chosen sport could potentially encourage another country with a similar background to want to host the next edition. An unexpected but successful host nation could lead to a large surge in popularity in the particular sport, as seen by the large surge in Japanese rugby fans after seeing their country’s success. 


However, there are downsides to allowing countries with little hosting experience to organise a huge, international sports competition. Such large sports competitions are often surrounded by equally large scandals or money mismanagement accusations. Brazil, hosts of the 2014 FIFA World Cup and the 2016 Summer Olympic Games in Rio de Janeiro, were surrounded by scandals regarding the two competitions. The Brazilian government was lambasted by both national and international media for abandoning the infrastructure they built exclusively for both events. Last year, Business Insider remarked that Brazil spent $3 billion USD in building new stadiums for the 2014 FIFA World Cup. One particular stadium, the Arena da Amazonia in Manaus, cost the Brazilian government between $220-300 million USD, as well as the lives of three workers who died during construction. This stadium now sits on an abandoned and derelict site. In 2017, Business Insider again reported that the Olympic Village apartments built for the 2016 Rio Olympics (and worth $700 million USD) were abandoned. They were meant to be turned into luxury condos and sold after the Olympics but only 7% were actually sold. This of course, further infuriated locals. 

The next edition of the FIFA World Cup is due to take place in Qatar in 2022 although that has already been met with fierce criticism of the alleged human rights violations of migrant workers working on Qatari stadiums. Amnesty International estimates that there are 1.7 million migrant workers in Qatar. They are allegedly paid less than what the recruitment agency in their native countries promised them and have had their passports confiscated so they cannot go back to their respective countries. These examples reflect a failure in achieving globalisation from the political science perspective as regulations in these countries are not as fiercely imposed such as the ones in Europe for example. Experienced European host nations are usually not met with such large scandals as they have a more accomplished background in organising such large-scale competitions. 

To conclude, these statements raise the question of whether inexperienced countries should be trusted with such a large responsibility or not. The attempt to globalise sport by reaching other audiences is predominantly welcomed worldwide but certain failures in previous competitions undermine the potential success of the concept of globalised sport. Can inexperienced countries provide the necessary infrastructure such as enough public transport routes and accommodation to withstand the very large volumes of incoming spectators? For the most part, this is usually achieved but unethical abandonment of this infrastructure once the competition is over is unfortunately often a recurring event. These are complex questions which have led to numerous debates on the matter and varying opinions which are of course, a product of personal interpretation. However, one thing is certain, the increase in the diversification of hosting rights of international sports competitions has undoubtedly started. The real question is whether it will continue or not.