Pankaj Ghemawat, “Distance Still Matters,” Harvard Business Review 79, no. As summarized in Table “The CAGE Framework”, the CAGE (cultural. Dec 10, Culture happens to be the first facet of CAGE, in terms of the acronym, but it also CAGE Framework, MBA discussions, Pankaj Ghemawat. Pankaj Ghemawat . CAGE distance framework, where “CAGE” is an acronym for Cultural, Administrative The CAGE Framework for Country-Level Analysis.

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Here is the list of the…. The impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models.

CAGE Distance Framework – Wikipedia

Is value creation by Venture Capitalists a reality or myth? Facebook has more than framewkrk users that makes it the 3rd largest country in the world. If you are in a Business school, invariably you will get references to Porter and theories on Business Strategies…. Views Read Edit View history. The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries.

Lack of colonial ties Lack of shared regional trading bloc Lack of common currency Political hostility. Do you want to impress or confuse clients or Vice Versa?

By analyzing the possible impact of fframework tance—in all its dimensions—you sweeten the odds of ghemawatt in profitable foreign markets. Different languages Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions.


It should be a crucial consideration for a consumer goods or media company, but it is much less important for a cement or steel business.

The hard reality of global expansion. The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies.

Culture happens to be the first facet of CAGE, in terms of the acronym, but it also can be the most practically perplexing facet for managers.

Think of international expansion as a movement along a continuum from known markets to less-known markets; a firm can move to more CAGE-proximate neighbors before venturing into markets that are portrayed as very different from a CAGE-framework perspective. For example, it can help explain the strength of Spanish firms in many industries across Latin America. The table [4] [5] shown below provides more detail on each of the CAGE categories, and how they can manifest themselves depending on whether one is comparing a pair of countries or looking at xage in isolation.

By using this site, you agree to the Terms of Use and Privacy Policy. Always fra,ework good reference…. One method to conduct quantitative analysis of this type is to discount specifically, divide raw measures of market size or potential with measures of distance, broadly defined.

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Whatever it is… there is no denying the fact that…. The complete article reference is here: Retrieved from ” https: How to choose foreign countries. Landlockedness Lack of internal navigability Geographic size Geographic remoteness Weak transportation or communication links.


Because they affect fundamental business yhemawat, they often affect the competitive position of firms as well. Ghemawat offers some advice on how the CAGE Framework can help managers considering international strategies:.

Application of the CAGE framework requires managers to identify attractive locations based on raw material costs, access to markets or consumers, or other key decision criteria. By contrast, similarities along these dimensions suggest great potential. Ghemawat frammework that different types of distance matter to different extents depending on the industry. From Wikipedia, the free encyclopedia.

The CAGE Framework – Distance Matters in Globalization!!!

How far apart are trading partners in physical terms: Distinct cultural differences are observed around the following dimensions: Related Framwork 08 Jun.

One of the distinctions between the CAGE Framework and other bhemawat analysis frameworks is its inclusion of bilateral as well as unilateral factors. The other day, a doctor was asking me about investment banking and why is it so hot.

This page was last edited on 12 Septemberat Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level.