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CAGE Distance Framework Template
The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic (CAGE) differences or distances between countries that companies should address when crafting international strategies. It was developed by Pankaj Ghemawat, an international strategy expert, to offer businesses a way to evaluate countries in terms of the “distances” between them.
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2. CAGE Distance Framework Template
Country A
Country B C
Cultural
Distance
List the cultural norms, values and social beliefs, also known as the unwritten rules, that shape the behavior of individuals and organizations. Various societies also differ in their attitudes toward globalization and market power that have important consequences in terms of both formalized trade regulations and general attitudes toward how businesses are run. A
Administrative Distance
List the differences in history and politics among countries, especially those which do not share colonial ties. Also, a lack of shared currency, political hostilities, and government corruption contribute to Administrative distance. G
Geographic Distance
Geographic distance refers not only to the physical distance between two countries, but also a country’s physical size, whether it shares borders with hostile or non-hostile neighbors, and access to trade routes such as the ocean and other topographical features. List these attributes. E
Economic Distance
Two of the biggest determinants of economic distance are the Cost of Labor and level of Consumer wealth between countries. It is more difficult for a company from a wealthy country to enter a poorer country and be successful there, but not impossible. List these determinants.
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