See the management Focus on Cemex then answer the subsequent question: a. Which theoretical explanation, or explanations, of FDI greatest explains Cemex's FDI? m. What benefit does Cemex bring to a host economy? Is it possible to see any kind of potential drawbacks of Cemex's inward purchase in an economic system? c. Cemex has a good preference pertaining to acquisition above greenfield ventures as a great entry function. Why? d. Why do you think Cemex made a decision to exit Indonesia after declining to gain bulk control of Seminal fluid Gresik? Exactly why is majority control so important to Cemex? electronic. Why do you think politicians in Indonesia tried to block Cemex's attempt to gain majority control of Semen Gresik? Do you think Indonesia's best interests had been served by simply limiting Cemex's FDI in the area?
a. The theory that best explains Cemex's foreign direct expenditure (FDI) activity is that of internalization due to restrictions of license or also known as the market flaw approach. Cemex wanted to broaden horizontally as it wanted to decrease its dependence on its home market and supply some balance in the with regard to their product. Also, they will saw opportunities abroad and it could give their assistance, which necessary building extremely personal interactions with the marketers and the contractors themselves. Lastly they had put in a lot of time working on their i . t system that allowed those to control all their supply and it was element of their competitive advantage. Because of their unique business model, they would not be able to get the same value by licensing their particular business hence they had to internalize the business enterprise abroad and directly set up business in another country. b.