Internalization theory best explains CEMEX’s FDI Essay

1.Which theoretical explanation (or explanations) of FDI best explains CEMEXs FDI? 1.Internalization opening best explains CEMEXs FDI because CEMEX entered into many countries and bought domestic cement businesses instead of licensing. CEMEX has a big(p) system and needs to protect it from competitors.2.What value does CEMEX bring to a host economy? Can you see any potential drawbacks of secret investment by CEMEX in an economy? 1.The value is that CEMEX has a Midas fit that transforms a cement business into a thriving business. This brings great input to the host economy and also helps in the construction field, which in change shape helps to build cities and civilization. No, CEMEX would do well to invest inwardly, yet, CEMEX is better at acquisitioning businesses.3.CEMEX has a strong preference for acquisitions everyplace greenfield ventures as an entry mode. why? 1.Acquisitions ar solid because the business in the host economy already knows the demographics and the market . CEMEX proficient has to make the business better with little research. A greenfield venture would fold risky and not cost effective.4.Why do you think CEMEX decided to go away Indonesia after failing to gain majority control of Semen Gresik? Why is majority control so important to CEMEX? 1.A licensing is very dangerous. CEMEX only surrender a 25% push with Semen Gresik. It did not deport in effect(p) control and the methods of CEMEX would be exposed and vulnerable to be stolen. CEMEX has a great system and does not want anyone interfering.5.Why do you think politicians in Indonesia act to block CEMEXs attempt to gain majority control over Semen Gresik? Do you think Indonesias best interests were served by narrowing CEMEXs FDI in the country? 1.Indonesian politicians did not like the possibility of CEMEX winning over the cement market. Their interests were in domestic businesses and protecting the purity of their economy. No, Indonesia would have benefitted greatly if CEME X was allowed an in.6.What is CEMEX doing today? Do they still engage in FDI? 1.MONTERREY, MEXICO- OCTOBER 8, 2010 CEMEX (NYSE CX), inform today that pursuant to the exercise of a put option by Ready Mix ground forces it will acquire its partners interests in the two joint ventures between CEMEX and Ready Mix USA which hav