Cemex

Read the management steering on Cemex and then answer the following question a. Which theoretical explanation, or explanations, of FDI better(p) explains Cemexs FDI? b. What value does Cemex bring to a host thriftiness? Can you see any potential drawbacks of Cemexs inward investment funds in an economy? c. Cemex has a strong preference for acquisition over greenfield ventures as an entry mode. Why? d. Why do you animadvert Cemex heady to exit Indonesia after failing to gain majority control of source Gresik? Why is majority control so important to Cemex? e.Why do you think politicians in Indonesia tried to block Cemexs attempt to gain majority control over Semen Gresik? Do you think Indonesias best interests were served by limiting Cemexs FDI in the country? Answer a. The surmise that best explains Cemexs foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the market stain approach. Cemex wanted to expand horiz ontally because it wanted to reduce its reliance on its home market and provide some stability in the petition for their product.Also, they saw opportunities abroad and it could provide their service, which required building very in the flesh(predicate) relationships with the distributors and the builders themselves. Lastly they had spent a lot of time working on their information technology system that allowed them to control their supply and it was part of their private-enterprise(a) advantage. Due to their unique contrast model, they would not be able to play the same value by licensing their business thus they had to internalize the business abroad and directly set up business abroad. b.