The Time Value of Money is a fundamental concept used in financial analysis. Explain why it is important for financial managers to understand and utilize the principles involved.
Provide an example that could be used to illustrate the concept to people who have not encountered the idea before.
Explain whether you consider it important for people generally to understand the concept as Saudi Arabia continues to move toward Saudi Vision 2030.
Search the SEU library or the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.
The Time Value of Money is a fundamental concept used in financial analysis
Time value of money (TVM) is important in financial management because the cash you have today has a higher value than cash that you are anticipating in the future. The TVM is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. The dollar on hand today can be used to invest and earn interest or capital gains. A dollar promised in the future is actually worth less than a dollar today because of inflation. Provided money can earn interest, this core principle of finance holds that any amount of money is worth more the sooner it is received.
hreat isn’t really an “objective sense” in terms of language but the consequences of political and social interaction through discourse. This discourse includes collective identities, social values and normal which are all factors that are a piece of an intersubjective built ward. The securitisation theory has therefore broadened and deepened the views of security studies by redefining the significance and meaning of “power politics”, by doing this a security issue is characterises as existential danger thus differentiating it from “normal politics”. (McDonald, 2008) This essay will examine the strengths and weakness of the securitisation theory; some strengths being that the securitisation theory has provided a more wider perspective on security issues and weaknesses are that this theory makes narrow assumptions. These strengths and weakness will be further evaluated in the essay.
The main aim of this essay is to examine and evaluate the strengths and weaknesses of the securitisation theory. The Copenhagen School of International Relations will be discussed throughout this essay; they will be defining security using the traditional position on security of Realism, the Aberystwyth School (CSS) and view of the second-generation scholars. The constructivist thought on security is the strength of the securitisation theory as it provides a more extensive and deeper point of view on security issues. Security plan will therefore be considered as a conception of security that forms a threat to the military as well political financial, societal and ecological divisions. Military threat is the security that securitising actors give most importance to, military issue is above all issue. Deepening will be considered as a development of the security idea where people, social groups and humankind overall “have a legitimate claim to survival” (Buzan et al, 1998) the state is therefore considered a referent object of the securitisation process. This essay will then go onto discuss the weaknesses of the securitisation theory; narrow assumptions of epistemology undermines the role of logical factors in the development of security issues. (Stritzel and Schmittchen, 2011) Therefore to get a better understanding of the securitisation theory it will critically evaluated.
The Copenhagen School defines securitization as a process that is socially constructed, an object in society is considered important and thus deemed worth protecting; securitising actors in society decided which process or object in society is important and must be protected. Ole Wæver in his book Securitization and Desecuritization proposes a theoretical explanation of securitization. To understand the security process Wæver writes about national security and threats to it, his argument composes a threat-defence model, he formulates this models from his observation of operations conducted in the field of security. (Wæver, 1995) Weaver regarded security as a “speech act”, a person with authority can voice a situation to be a security issue and thus giving it special status and allowing measures to be taken to deal with the issue. ‘It is by labelling something a security issue that it becomes one.” (Weaver, 1995) The Copenhagen School defines securitization as “Based on a clear idea of the nature of security, securitization studies aim to gain an increasingly precise understanding of who securitizes, on what issues (threats), for whom (referent objects), why, with what results and, not least, under what conditions (what explains when securitization is successful).” (Buzan et al 1998) A successful securitization process is expediated by internal or speech act and by external or contextual factors, it’s a process between the social capital of the main person or organisation and the nature of the threat. (Buzan et al 1998) For example, refugees in the past were not considered a security threat instead was seen as a humanity issue but now they are considered a security threat; through the naming process they are considered a security issue therefore, political communities will have to respond within their community. The study of security has changed drastically since the end of the end of the Cold War. A multipolar world developed so the idea of securitization was seen in a different way, securit