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?

note:5-6 paraghraphs

Answer 1

The Concept like inflation , present value , future value play an important role in while making decision tht will have economic impact. Inflation helps in determining the future corpus for any kind of goaal setting be it personal level, firm level or economy level. Present vaue helps us to know what will be current value of future cash flows and accordingly it helps determining the project efficiency. Similarly, future value will be found after knowing the interest rate , capital, time period of investment. While making investment, its future vaue also depends on average inflation because it will be factored in the investment. While making any decision , a manager has to do the PESTLE analysis to have holistic apporach. The Political, Economic, Social, Technological , Legal, Environmental factors should be made into consideration making a lue print of Visiion 2030.