CAGE Distance Framework
In this article, I am going to give you a brief introduction to CAGE distance framework.
Let’s start.
The CAGE Distance Model is a framework for comprehending & evaluating the distinctions between countries with regard to their administrative, geographic, cultural, and economic distances. The model, which was created in the early 2000s by academics Pankaj Ghemawat and Kenichi Ohmae, offers an organised approach, considering the opportunities and problems that come with cross-border operations for businesses and organisations.
The four categories of distance that can impact business operations are represented by the acronym CAGE:
- Cultural distance: describes how different languages, religions, values, conventions, and customs are between nations.
- Administrative distance: describes the different governments, legal systems, and regulations that exist in various countries.
- Geographic distance: describes the variations in physical distance, time zones, and climate between countries.
- Economic distance: describes the disparities in infrastructure, technology, wealth, and income levels between nations.
The CAGE distance model assists companies in identifying possible obstacles and opportunities for entering new markets or collaborating with partners abroad by analysing these kinds of distances between nations. Decisions regarding supply chain management, cultural adaptation, and market entry tactics can all be influenced by this framework.
I hope this article adds something new to your knowledge!!!!!!!!
