International Business · International Strategy

La Zona Franca

Simulation to teach FDI location analysis, fiscal incentive modeling, and political risk assessment through a manufacturing relocation decision in Honduras

4 rounds Executive English, Español
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Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 4 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • A: Gov honors 20yr contract (%)
  • B: Revocation at year 10 (%)
  • C: Political crisis / expropriation (%)
  • D: Unilateral renegotiation (%)
  • Mitigation Strategy
  • Investment Location
  • Final Strategy
  • Gov Equity Offer (%)
  • Stability Contract (years)

What participants track

What participants follow on screen as the rounds go by:

  • NPV Trajectory

Subjects covered

Designed for courses in International Strategy.

  • Scenario Planning & Strategic Foresight
  • Risk Management
  • ESG Strategy & Implementation

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