Olympic Games bids: Can it be an economic boost?
4 September 2013 Last updated at 10:57 BST
Olympic officials in Buenos Aires are set to decide who will host the 2020 Games on 7 September 2013.
Madrid is going up against Istanbul and bookmakers' favourite Tokyo.
Dr John Glen from Cranfield School of Management told BBC World what it takes for a city to be chosen to host the Games: "Competence to deliver the Games and the vision as to what your Games is going to do to the global sporting event."
He added that while hosting the Games could be expensive, it could still help an impoverished nation: "The construction, tourism and legacy effects - so yes, the Spanish economy could benefit."
"It can be incredibly profitable so I think there will be a bigger queue of nations in the future wanting to host these Games."