Pankaj Ghemawat, “Distance Still Matters,” Harvard Business Review 79, no. As summarized in Table “The CAGE Framework”, the CAGE (cultural. Pankaj Ghemawat. What Are the Real Pankaj Ghemawat. How Global Are The CAGE Distance Framework. Cultural. Distance. rated into the CAGE framework for understanding the differences be- . by Pankaj Ghemawat and Ken Mark, “Wal-Mart’s International.
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One of the distinctions between the CAGE Framework and other country analysis frameworks is its inclusion of bilateral as well as unilateral factors. Each dimension of CAGE is described below. This page was last edited on 12 Septemberat Caye of colonial ties Lack of shared regional trading bloc Lack of common currency Political hostility.
Whatever it is… there cagf no denying the fact that…. Leave a Reply Cancel reply Your email address will not be published.
The more two countries differ across these dimensions, the riskier the target foreign market. 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.
Ghemawat offers some advice on how the CAGE Framework can help managers considering international strategies:.
For instance, a firm maybe most interested panksj markets with high consumer buying power, so it uses per capita income as the first sorting cue. Related Posts 01 Jun.
Ghemawat emphasizes that different types of distance matter to different extents depending on the industry. A Financial Statement can be…. The other day, a doctor was asking me about investment banking and why is it so hot. How far apart are trading partners in physical terms: The hard reality of global expansion.
Retrieved from ” https: Distinct cultural differences are observed around the following dimensions: The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries.
From Wikipedia, the free encyclopedia. Comment Name Email Website. 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. If you know the enemy and know yourself, you need not fear the result of a hundred battles. Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level.
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.
The table   shown below provides more detail on each of the CAGE categories, pankajj how they can manifest themselves depending on frameworrk one is comparing a pair of countries or looking at one in isolation.
It makes distance visible for managers. The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies.
The CAGE Framework – Distance Matters in Globalization!!! | EnrichWise
Because geographic distance, for instance, affects the costs of transportation, it is of particular importance to companies dealing in heavy or bulky products.
How to choose foreign countries.
Also, types of distance af- fect industries differently. By contrast, similarities along these dimensions suggest great potential. 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.
Landlockedness Lack of internal navigability Geographic size Geographic remoteness Weak transportation or communication links. Different languages Different ethnicities; lack of connective ethnic or social networks Different religions Lack of trust Different values, norms, and dispositions.
This has been one of the biggest barriers, for instance, in the way of U. Is value creation by Venture Capitalists a reality or myth?
CAGE Distance Framework – Wikipedia
By analyzing the possible impact of dis- tance—in all its dimensions—you sweeten the odds of investing in profitable foreign markets. Ghemaqat 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.
Such models “resemble Newton’s law of gravitation in linking interactions between countries to paniaj product of their sizes usually their gross domestic products divided by some composite measure of distance. The complete article reference is here: