Professional Documents
Culture Documents
CAGE Model
CAGE Model
CAGE Framework
Internationalization
Strategy
Companies routinely exaggerate the attractiveness of foreign markets, and that can
lead to expensive mistakes. Here’s a more rational approach to evaluating global
opportunities.
• Traditional • CAGE
West German consumers preferred front-loaders with high spin-speeds of 800 rpm or
more.
The British prefer 800 rpm front-loaders, but with a hot and cold water fill rather than
cold-water-only supply.
C Cultural
Distance
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
contribute to Administrative distance. • •
• •
G Geographic
Distance
trade routes such as the ocean and other topographical features.
List these attributes.
• •
• •
E Economic
Distance
country and be successful there, but not impossible. List these
determinants.
• •
• •
Different religions 5
Differences in climates 1
Natural resource 4
Human resources 5
Infrastructure 2
CAGE Analysis:
Cultural Distance: Administrative Distance:
- Religion - Political linkages
- Ethics and values - Trade agreements
- Different national work systems - Political hostility
- Design differences - Government policies
- Home bias
- Food preferences