BUSN 427 WK 3-2 Management FOCUS: Foreign Direct Investment by Cemex

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Read the Management Focus on Cemex and then answer the following questions:

 

a. Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI?

b. What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?

c.  Cemex has a strong preference for acquisitions over greenfield ventures as an entry mode. Why?

d. Why is majority control so important to Cemex?

 

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