CAGE Analysis

Maria Cristiana Veana Andrade

Lynn University
 Mexico USA Germany
C Language: Spanish Language: English, Spanish Language: German
U Ethnicities: mestizo (Amerindian-Spanish) Ethnicities: White, Black, Asian Ethnicities: German 91.5%, Turkish 2.4%, Italian 0.7%, Greek
L 60%, Amerindian or predominantly Amerindian Religion: Protestant, Roman 0.4%, Polish 0.4%, other 4.6%
T 30%,white 9%, other 1% Catholic, Mormon, other Christian, Religion: Protestant 34%, Roman Catholic 34%, Other or
U Religion: Roman Catholic Christianity 82.7%, Jewish, Buddhist, Muslim Unspecified 28.3%, Muslim 3.7%, Mormon 1.7%
R Other Evangelical Churches: 5%, none 4.7%, Individualistic, punctual, task- Social norm/values: Structure, privacy and punctuality,
A unspecified 2.7%, other 1.9%, Pentecostal based relationships, risk takers, perfectionism, precision, thriftiness, hard work and industriousness
L Christianity: 1.6%, Jehovah’s witnesses 1.4% egalitarian, self-reliant,
Social Norm/values: Hierarchical, highly independent,
stratified, hierarchical relationships, family
oriented, importance of rank
A Colony/colonizer: Colony (Spain) Colony (Britain) Colonizer
D Regional Trading Bloc: Chile, Colombia, EFTA, NAFTA, CAFTA-DR, trade Albania, Algeria, Andorra, Bosnia and Herzegovina, Cameroon,
M EU, GSTP, Israel, Japan, LAIA, Central American, agreements with Australia, CARIFORUM States EPA, Central America, Chile, Colombia and
I Uruguay, NAFTA, Peru, PTN, Republic of Korea. Bahrain, Chile, Colombia, Israel, Peru, Cote d’Ivoire, Eastern and Southern Africa States Interim
N Currency: Mexican Peso Jordan, Morocco, Oman, Panama, EPA, Egypt, Faroe Islands, Former Yugoslav Republic of
I Type of Government: Federal republic, Peru, Singapore, Macedonia, Georgia, Iceland, Israel, Jordan, Republic of Korea,
S democracy, Dollar Lebanon, Mexico, Montenegro, Morocco, Norway, OCT,
T several political parties. Federal republic . Democracy, Palestinian authority, Papua New Guinea/Fiji, Republic of Moldova,
R Legal System: Civil law Several political parties San Marino, Serbia, South Africa, Switzerland/Liechtenstein, Syria,
A Corruption index: 34 Common Law based on English Tunisia, Turkey, Ukraine, EEA, Canada, EAC, India, Japan,
T Model Malaysia, Philippines, SADC EPA, Singapore, Thailand, USTTIP,
I 73 Vietnam, West Africa EPA
V Euro
E Parliamentary democracy
Civil Law
79

G Canada, Mexico 357,168 km². Belgium, Czech Republic, Netherlands, Austria,

E Physical Distance from US West coast : 4 time zones, UTC-8 Switzerland, France, Poland, Luxembourg, Denmark. Access to
O 7861.09 km Mostly moderate but tropical in sea.
G Land Area/Border: 1.973 million sq km . FL/Hawaii CET + 1
R United States, Guatemala, Belize. Access to sea Air pollution. Temperate and marine; cool, cloudy, wet winters and summers;
A Time Zones: CST -6 , EST -5, MST -7, PST -8 Good ports, transportation, occasional warm mountain (foehn) wind
P Climate: Varies from Tropical to Desert internet penetration Air pollution, water pollution, acid rain, hazardous waste disposal,
H Environmental issues: Pollution of water, non preservation of fauna and flora.
I Deforestation, erosion, desertification, air Good ports, transportation, internet penetration
C pollution,
A land subsidence.
L Internal Navigability: good ports, intermediate
roads and poor railway system
Transportation and communication links:
internet penetration
E Economic system: Open Market Open market Open market
C GDP- PPP/ per C. / growth rate : $18.1T, $ 47,000, 3.7% $3.227 trillion / $39,500 0.5%
O $1.845 T / $15,600/ 1.2% Coal, copper, lead, coal, lignite, natural gas, iron ore, copper, nickel, uranium, potash,
N Natural resources: petroleum, silver, copper, Educated, skilled , high cost salt, construction materials, timber, arable land
O gold, lead, zinc, natural gas, timber Good everywhere Educated, skilled, high cost
M Human Resources: low cost labor 325 million Good infrastructure
th
I Infrastructure: average and good in major .914 (5 ) 80,996,685
C cities 87.4% .916
Population: 120,286,655 84%
Human Development Index: .756
Internet penetration: 43.5%
Analysis

According to the CAGE analysis, Germany and Mexico have both

similarities and differences that may improve or harm the business relationship

they have with the United States. In the cultural aspects, we can see that Mexico

and the United States have a common language (Spanish) whereas although in

Germany they speak an entirely different language, this may facilitate/harm the

relationship they have with the U.S respectively. In other cultural aspects we can

see that the three countries have things in common such as religion and different

such as how Mexico is very family oriented and the US and Germany are more in

common such as punctuality and the way they work.

In the administrative aspect we can see that they all have common trade

blocs with each other making the exports and imports easier between one another.

However we can see that the three countries have different monetary systems.

Although the three of them are democracies, only the US and Mexico are federal

democracies with several parties while Germany is a Parliamentary democracy. As

for the legal system Germany and Mexico both use Civil law while the United

States uses common law system based on the English. However, Mexico has a

very high corruption while the United States and Germany enjoy low corruption

within their borders.

In the geographical aspect Mexico has advantage for being so close to the

United State’s west coast. The three countries have direct access to ports that

facilitates the transportation of goods. Climate is varied for the three countries. The

three countries enjoy from good Internet penetration, the US and Germany has
excellent means of transportation within the countries while Mexico has poorer

transportations while having good ports. Germany, the US and Mexico suffer from

water and air pollution, Mexico suffers from deforestation, desertification and

erosion while Germany suffers from acid rain and hazardous waste.

The three countries are open market while we can see a clear difference

between countries in GDP-PPP (Highest to lowest: US, Germany, Mexico), per C.

(US, Germany, Mexico), and growth rate (US, Mexico, Germany). Germany and

Mexico are high in natural resources, although Mexico has more expensive natural

resources than Germany; the US is low in the same category. Both Germany and

the U.S have educated, skilled and high cost labor, advanced infrastructure while

Mexico has low cost labor and average infrastructure and good in major cities.

Germany has lower population than Mexico and the United States. The human

development is high in Germany and in the United States while in Mexico, although

not bad, is a little lower. Internet penetration is very high in Germany and in the

United States while lower in Mexico as well.

The United States could well benefit from performing trade with both

countries given that Germany and Mexico do not compete in many aspects, they

are different so there is no need to exchange with one another, they both

complement each other. Mexico has the advantage of being closer and having

cheap labor, the United States can benefit from this country given that there are a

lot of companies here seeking for cheap labor. It could benefit from Germany,

however, when trading for specialized goods such as cars. Both Countries have

their advantages and disadvantages in dealing with: corruption is a good example,

while Mexico has lower labor cost, it has a rather large problem with corruption

while Germany doesn’t.

References

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