Question:

What theoretical explanation best explain Cemex's FDI?

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  1. Compare and contrast these explanations of vertical FDI: the strategic behavior approach and the market imperfections appraoch.  Which theory do you think offers the better explanation of the historical pattern of vertical FDI? Why?


  2. Compare and contrast these explanations of vertical FDI: the strategic behavior approach and the market imperfections appraoch.  Which theory do you think offers the better explanation of the historical pattern of vertical FDI? Why?

  3. Read the opening case on Cemex. What kind of FDI is Cemex pursing? Which theoretical explantion of FDI best explains Cemex's FDI?

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

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