In the Foreign Direct Investment by Cemex talks about that Cemex is rising to global status. Cemex is the world’s third largest cement company in the world and Mexico’s largest multinational company. In Mexico, Cemex is known for its efficient manufacturing and excellent customer service. Cemex began its international expansion in an effort to reduce its reliance on the Mexican market, to capitalize on demand in developing countries and its knowledge of developing company’s needs, and finally, to increase its value by acquiring inefficient companies and transferring its skills to those companies. Cemex plans to continue its foreign expansion, and believes that China and India will be important markets in the future. Discussion of the case can revolve around the following questions: Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI? Cemex is a cement company it is consentingly exporting. It is difficult to export because of the weight of the product. Cemex can expand into new markets, but they would either need to get a license of a local company or make an investment in the market directly. Cemex’s success is due in part to its top notch customer service, and relationship with distributors, but these advantages could be difficult to allocate, the company will probably choose to invest directly. 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? Cemex has sixty percent of the market in Mexico and is the third largest company of the world. Cemex bring to a host economy to acquire companies and then transfer technological, management, and marketing know-how to the new units, improving their performance. It has brought several companies back to full production. Cemex has a strong preference for acquisitions over greenfield ventures as an