'Internalization theory best explains CEMEX’s FDI Essay\r'

'1.Which theoretical account (or explanations) of FDI best explains CEMEX’s FDI? 1.Internalization theory best explains CEMEX’s FDI because CEMEX entered into many countries and bought interior(prenominal) cement businesses instead of licensing. CEMEX has a great system and needs to protect it from competitors.\r\n2.What quantify does CEMEX bring to a host delivery? provide you see any potential drawbacks of inward investment by CEMEX in an economy? 1.The value is that CEMEX has a â€Å"Midas touch” that transforms a cement business into a thriving business. This brings great stimulation to the host economy and also helps in the construction field, which in twirl helps to build cities and civilization. No, CEMEX would do well to invest inwardly, yet, CEMEX is disc everyplace at acquisitioning businesses.\r\n3.CEMEX has a strong preference for acquisitions over greenfield ventures as an entry mode. Why? 1.Acquisitions are unfluctuating because the busines s in the host economy already knows the demographics and the market. CEMEX just has to make the business better with microscopic research. A greenfield venture would prove risky and non cost effective.\r\n4.Why do you specify CEMEX decided to occur Indonesia after failing to gain majority throw of Semen Gresik? Why is majority control so important to CEMEX? 1.A licensing is very dangerous. CEMEX only spend a penny a 25% push with Semen Gresik. It did non have full control and the methods of CEMEX would be exposed and penetrable to be stolen. CEMEX has a great system and does not want anyone interfering.\r\n5.Why do you think politicians in Indonesia act to block CEMEX’s attempt to gain majority control over Semen Gresik? Do you think Indonesia’s best interests were served by limiting CEMEX’s FDI in the country? 1.Indonesian politicians did not like the guess of CEMEX taking over the cement market. Their interests were in domestic businesses and protec ting the â€Å"purity” of their economy. No, Indonesia would have benefitted greatly if CEMEX was allowed an in.\r\n6.What is CEMEX doing nowadays? Do they still engage in FDI? 1.â€Å"MONTERREY, MEXICO- OCTOBER 8, 2010 †CEMEX (NYSE: CX), inform today that pursuant to the exercise of a tack together option by Ready mix in the States it will acquire its partner’s interests in the two joint ventures between CEMEX and Ready Mix USA which hav\r\n'