The CAGE Framework: A Comprehensive

Analysis of Cultural, Administrative,

Geographic and Economic Distance
Introduction

The CAGE Framework is a tool that helps

businesses analyze the impact of cultural,
administrative, geographic, and economic
differences on their operations.
Understanding these differences is
essential for companies to succeed in
today's globalized world.
Cultural Distance

Cultural distance refers to the differences

between countries in terms of language,
religion, social norms, and values. These
differences can create communication
barriers, misunderstandings, and conflicts
that can affect business operations.
Administrative distance refers to the differences in legal systems, political
institutions, and bureaucratic procedures between countries. These differences
can create regulatory barriers, compliance issues, and legal risks for businesses.
Geographic distance refers to the physical distance between countries, as well as
differences in climate, time zones, and infrastructure. These differences can create
logistical challenges, transportation costs, and supply chain disruptions for
businesses.
Economic Distance
Economic distance refers to differences in
wealth, income levels, and market size
between countries. These differences can
create market entry barriers, pricing
challenges, and competitive pressures for
businesses.
Conclusion

The CAGE Framework provides a

comprehensive analysis of the various
factors that can impact business
operations in different countries. By
understanding and managing these
differences, businesses can increase their
chances of success in the global
marketplace.
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