Question

Why is it important to understand the concepts of inflation, present value, and future value of money as Saudi Arabia moves towards Saudi Vision 2030? What are some of the important terms and concepts that managers must understand in making decisions in today’s global environment? How will these factors affect Saudi Vision 2030?

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Answer 1

it is important to understand the concept of inflation along with present value and future value of money as Saudi Arabia will be moving towards Saudi vision because time value of money will be providing us with the better idea of valuation of money in context of the time because it advocates that the similar amount of money today is having a higher worth than the similar money of amount tomorrow because of factors like inflation and other factors which can appreciate the value of money over time period and hence there will be a requirement of interest payment in order to compensate for the loss of value of money due to the time value factor.

There are important terms and concept which will be important for the managers in order to make decisions in regards to the global environment and they will be related to the monetary policy changes and the political instability along with the inflation and interest rates changes and they will also be looking at various macro changes that will be continuously impacting the business of these companies like exchange rate fluctuations should also be discounted.

these factors can positively or negatively impact the Saudi vision 20 30 because it can have the favourable outcome if black interest are lowered as well as inflation has been kept in check and other political situations are favourable but if they are adverbs in nature and interest rates are rising it will be leading to a difficulty in achieving of the Saudi visit like we can see that uncertainty in case of coronavirus concern has really proved as a matter of hindrance.