Cemex's FDI can be explained through the internalization theory, which suggests that firms invest overseas to internalize markets and resources that cannot be accessed through alternative means like licensing. Additionally, the eclectic paradigm provides another perspective, emphasizing the importance of ownership-specific advantages, location factors, and internalization advantages in driving FDI decisions, which likely played a role in Cemex's investments.
The theory that best explains Cemex's foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the market imperfection approach. Cemex wanted to expand horizontally because it wanted to reduce its reliance on its home market and provide some stability in the demand for their product. Also, they saw opportunities abroad and it could provide their service, which required building very personal relationships with the distributors and the builders themselves. Lastly they had spent a lot of time working on their information technology system that allowed them to control their supply and it was part of their competitive advantage. Due to their unique business model, they would not be able to get the same value by licensing their business thus they had to internalize the business abroad and directly set up business abroad.
Cemex was created in 1906.
The theory that best explains Cemex's foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the market imperfection approach. Cemex wanted to expand horizontally because it wanted to reduce its reliance on its home market and provide some stability in the demand for their product. Also, they saw opportunities abroad and it could provide their service, which required building very personal relationships with the distributors and the builders themselves. Lastly they had spent a lot of time working on their information technology system that allowed them to control their supply and it was part of their competitive advantage. Due to their unique business model, they would not be able to get the same value by licensing their business thus they had to internalize the business abroad and directly set up business abroad.
The symbol for Cemex S.A.B. de C.V. in the NYSE is: CX.
Cemex
As of July 2014, the market cap for Cemex S.A.B. de C.V. (CX) is $15,408,973,299.42.
Cemex is an industry leader in the delivery of cement , tar, concrete, and most major building materials for onsite construction needs for the United States. Building Supply is a complete specialty for Cemex an industry leader for years.
CEMEX's inward investment in an economy can be seen except in Indonesia. In Indonesia, a pressure group was developed against CEMEX on the ground of nationalizing sentiments. to repatriate their foreign earnings (either through dividends or payments to the parent company) the local country loses some of the foreign capital they received from the Cemex investment.
The Zambrano Family
CEMEX
Red and blue
The ticker symbol for Cemex is CX and it is traded on the New York Stock Exchange as an ADR. It is also traded under the symbol MXK on the Mexican Stock Exchange.