Cemex

Read the circumspection Focus on Cemex and then resolution the following question a. Which theoretical explanation, or explanations, of FDI beat explains Cemexs FDI? b. What value does Cemex represent to a host thrift? coffin nail you see any potential drawbacks of Cemexs inward enthronement in an economy? c. Cemex has a strong preference for scholarship over greenfield ventures as an entry mode. why? d. wherefore do you think Cemex decided to exit Indonesia after failing to increment majority control of seed Gresik? Why is majority control so outstanding to Cemex? e.Why do you think politicians in Indonesia tried and true to block Cemexs attempt to strive majority control over Semen Gresik? Do you think Indonesias outflank interests were served by limiting Cemexs FDI in the country? Answer a. The theory that best explains Cemexs foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the securities industr y imperfection approach. Cemex wanted to expand horizontally because it wanted to reduce its reliance on its home market and provide more or less stability in the demand for their product.Also, they cut opportunities abroad and it could provide their service, which required build very personal relationships with the distributors and the builders themselves. Lastly they had played out a lot of time working(a) on their information technology dodging that allowed them to control their supply and it was part of their free-enterprise(a) advantage. Due to their unique business model, they would non be able to get the similar value by licensing their business therefore they had to internalize the business abroad and presently set up business abroad. b.