GearCity: Analysis of Pension Investment Account

 Learning Environment

GearCity does not offer a realistic approach to business activities. The account

for retirement is a one-way account with little to no protection for

the business owners when they deposit funds. This means that it is better to pay

as you go than invest for the future. Meaning the economic effects of investing

into these types of funds in-game are at a high risk based on how the interest

rates are set.

The pay-as-you-go design better establishes minimum risk to the investing corporation. But this does not reduce the risk it then takes on with its

employees and the union. This creates a risky direction, as a few missed

steps can cause a strike or, worse, the entire business goes under.