The Globalization of

CEMEX
Submitted by-
Manashree Thaosen M025-17
P Kumar M032-17
Keval Satra M091-17
Pulak Sahu M167-17
Rohan Ganatra M169-17
 What benefits have Cemex and other global
competitors in cement derived from globalization

• Access to raw materials and other resources – Globalization provided access to

1
cheap raw materials which were abundant in many regions of the world.

• Risk reduction – Globalization helped the cement industries reduce the risk of failing in
one region due to cyclicality by expanding to other regions.
2
• Access to developing markets – Expanding to regions where the market was already
present, made it easy to operate.
3
• Cost saving :Expansions via acquisition helped them gain market share and helped
them bolster their export capabilities. It also helped in the reducing of export tariffs
4
VALUE ADDED BY CROSS BORDER ACTIVITIES TO AN INDUSTRY ARE AS FOLLOWS-

 ECONOMIES OF SCALE-

 NEW CUSTOMER SEGMENTS - Globalization also helped CEMEX and it’s

competitors to gain access to new customer segments which might arise
due to some political and economic factors. For example: The Peso crisis
 RESEARCH AND DEVELOPMENT- Access to cheaper raw materials, labour
resources and challenges faced in the new market push companies to
invest in R&D. Internationalization also helps the companies in diverting
away the low priced imports from home market