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

*saudi vision 2030

Vibrant society,thriving economy and ambitious nation are the three pillars on which saudi vision 2030 is built.this vision aims at inclusive growth and economic development.it aims to reduce dependence on oil and develop other sectors also.these sectors are such as entertainment, tourism,health,education,infrastructure etc in which huge amount of investment is required.saudi wants to diversify its economy and achieve fast growth rate.saudi wants to increase its investment capacity,both domestic and foreign.for that present and future value of money is important.along with that inflation stability is also important.

Currently saudi are facing problem due to pandemic.oil prices have gone down and because of that,their revenue has declined.

*some of the factors that managers must understand in making decisions in todays global environment are recession,inflation,investment,demand and supply etc.among these factors demand and supply are primary because managers should be very careful with production and sales decisions as they have to monitor demand and supply of a particular product and then move forward with the product.manager also has to understand the amount of investment that needs to be put in.

In the pandemic time,recession is there and therefore manager should have proper planning and strategy against recession.global market and global prices need to be considered while taking decisions.

*inflation,present value and future value of money in the context of dubai vision 2030

Inflation has decreased considerably because of decreased oil prices all around the world.saudi is facing problem due to this.public and private investment have been made under dubai vision 2030 for its diversified programmes.present and future value of money have become volatile due to fluctuations in stock market and decrease in investment capacity all around the world.no one knows how much inflation will become stable in the future and how much money value will become stable.present value seems to be volatile and because of that dubais investment plans have not been able to modify according to the planning of dubai vision 2030.