Eclectic Paradigm and Cemex

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An Analysis Of The OLI Paradigm “ Much of CEMEX’s success could be attributed to how it looked at acquisitions, and the post- merger integration (PMI) process that ensued, as an opportunity to drive change and as a result, continuously evolve as a corporation” (Lessard and Reavis, 2009, p.01) The rapid globalization and efforts by corporations to expand internationally has prompted methods to come to understand the qualitative and quantitative decision factors influencing the determination of whether and where to expand. In this essay one such paradigm will be discussed. Specifically I will endeavor to explain the OLI Paradigm for globalization, first developed by John Dunning in 1976 (Dunning 2001, p. 173). I will argue that the OLI Paradigm ought to be understood as a stark refinement on the IR framework that gives quantitative and qualitative metrics for a corporation by which to gauge a foreign expansion. The OLI Paradigm, however, it will be argued, takes as its foundation the IR framework and as such is grounded on the idea that corporations seek out to integrate in, absorb and learn from, and influence the foreign market they enter. The OLI Paradigm provides the criteria that measures the likelihood of success of that integration and response. First, I will briefly explain the IR framework, after which I will systematically investigate and explain the three determinants forming the OLI Paradigm and finally I will conclude with a summation taking the two principles in connection with one another. This argument will be enforced by the empirical case of Cemex to demonstrate the real-world applicability of these concepts. First then, to come to discern how the OLI Paradigm characterizes and explains the internationalization of Multi-National Corporations (MNC) it is paramount to 1 understand the theoretical and conceptual bedrock of its predecessors. The OLI

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