AAA Framework and Case

AAA FRAMEWORK AND CASE 2

AAAFramework and Case

AAAFramework and Case

TheAdaptation-Aggregation-Arbitrage (AAA)model can be applied in the creation of value for global business byfirms in the international market. CEMEX provides a good case for afirm that that can benefit from the model due to its geographicdiversification of business into multiple regions. The firm can useaggregation component of the framework to gain market share andrevenue by adapting to new environments. Aggregation can be used togain economies of scale by the firm due to its regionalization ofbusiness operations. Moreover, the AAA framework can used to gainmore value by using arbitrage to exploit the differences betweenregions.