CAGE Distance Framework - Definition and Helpful Examples. (2023) (2023)

FAQs

What is an example of a CAGE Distance Framework? ›

A CAGE framework example of cultural difference is how the people of the new market will use and interpret the company's offer. For example, Fanta soft drink is peach flavored in Botswana, and the same product is adapted to appeal to the taste and cultural differences of the Japanese market to be more floral.

The CAGE Distance Framework helps companies because it can evaluate countries and determine the distance between them. This does not only involve physical geographical distance, but also figurative distances between various cultures, economies, and working methods.

The CAGE framework (Mariadoss, 2017) helps a firm gauge the distance that the target country is from the firm's home country on four dimensions. The greater the distance or difference, the more risk exists and the less opportunity there is for success.

The CAGE Distance Framework divides the differences between how countries do business into four categories which help to simplify the analysis. They are Cultural, Administrative, Geographic and Economic and provides a broader view of “distance” among countries than just the obvious one.

To apply the CAGE framework, identify locations that offer low raw material costs, access to markets or consumers, or other key decision criteria. You might, for instance, determine that you're interested in markets with strong consumer buying power, so you would use per capita income as your first sorting criterion.

CAGE analysis asks you to compare a possible target market to a company's home market on the dimensions of culture, administration, geography, and economy. CAGE analysis yields insights in the key differences between home and target markets and allows companies to assess the desirability of that market.

It enables discussion to take advantage of the differences. It's comprehensive in the categories. It works for all countries / markets. It provides a clear look at practicalities of entering a geographic market.

Distance is separated into four dimensions: Cultural, Administrative and Political, Geographic, and Economic.

Disadvantages. The major limitations are: It is only beneficial for determining the market size and focuses on your entry. It is not a quick structure to employ because it needs extensive market research.

What is an example of Economic distance? ›

People generally travel or transport goods considering the transport cost. For, examples, the 10 minutes or 2 km rickshaw ride may cost 30 rupees. One can change his/her dissension to travel that distance if 30 rupees is beyond their capacity. Here is the importance of 'Economic Distance'.

The CAGE Comparator (direct link: www.ghemawat.com/cage) is an online tool to facilitate cross-country comparisons using the CAGE Framework. It covers 16 types of Cultural, Administrative, Geographic, and Economic (CAGE) differences and distances across 163 countries, with customized coverage of 65 industry groups.

The CAGE framework examines four elements: Cultural, Administrative, Geographic, and Economic. While each element is important, in this response, I argue that the Economic element is the most critical when it comes to country selection decisions in international business.

To identify factors that have impacted media change in the two countries, this essay suggests moving systematically through the following six areas: (1) journalistic culture, (2) political system, (3) economic system, (4) citizens' media-related beliefs, (5) socio-economic development, and (6) external factors.

The goal of the PESTLE framework is to give a big picture for decision makers of individual countries. The CAGE framework is focusing on distances between the home and host country.

The CAGE does have limitations as a sole screening assessment of alcohol abuse and dependence. Without a lead in question, the CAGE does not distinguish between current and past drinking problems. The CAGE may have gender and ethnic biases (Steinbauer et al., 1998).

A five-question tool used to screen for drug and alcohol use; answering yes to two or more questions indicates a complete assessment is advised.

Four clinical interview questions, the CAGE questions, have proved useful in helping to make a diagnosis of alcoholism. The questions focus on Cutting down, Annoyance by criticism, Guilty feeling, and Eye-openers. The acronym “CAGE” helps the physician to recall the questions.

CAGE analysis can help you identify institutional voids by looking at the cultural, administrative, geographic, and economic differences between two areas. By understanding the differences between these areas, you can identify opportunities for new institutions or businesses.

What does CAGE stand for in business? ›

Yes, obtaining a CAGE Code is mandatory in order to do business with the federal government or receive federal grant funding. What is a CAGE Code? ( also known as SAMs) The CAGE Code is a five-character ID number used by the Federal Government to identify vendors. CAGE stands for “Commercial And Government Entity.”

Market structure is important in that it affects market outcomes through its impact on the motivations, opportunities and decisions of economic actors participating in the market.

Disadvantages include: The fish are crowded in cages, and there is a relatively high incidence of disease that can spread rapidly. There can be localized poor water quality, such as low dissolved oxygen, in and around cages. Caged fish do not have access to natural food, so a nutritionally complete diet is required.

In cage culture, fish are confined in cages constructed of wire or fiber netting suspended from a floating frame. Cages range in size from 1 to 2000 m³ or more. Cages are secured by anchors in streams, lakes, and reservoirs. Net pens are formed by securing netting to poles driven into the bottom of a water body.

Hall (1969) delineated four zones of interpersonal distance that characterize Western culture: intimate (up to 18 inches), personal (18–48 inches), social (48 inches to 12 feet), and public (greater than 12 feet).

A naturally-occurring example of a 4D structure is the pinecone. Pinecones are covered with woody scales. The underside of each scale is made up of long, parallel, thick-walled cells which get longer when they get wet, and shorten when dry.

4D is also an important idea in physics, developed in the 20th century. In physics, it refers to the idea of time as a fourth dimension, added to the (3D) spatial dimensions. Albert Einstein developed the idea of spacetime by connecting space and time together.

Professor Pankaj Ghemawat developed the CAGE Distance Framework to help organizations explore how distance could affect plans for international expansion. He split distance into four key categories: Cultural distance. Administrative distance.

What are the disadvantages of enriched cage production? ›

Use of the enriched colony cage for the productive lifetime of commercial hens impedes the performance of locomotion, exploring, dust bathing, foraging, wing flapping and stretching, which can lead to “sham” behaviours and feather pecking.

If a car travels 100 meters north and then turns right and travels another 300 meters east, then the total distance that the car traveled can be found simply by adding the two segments of length traveled together. In this example, the total distance the car traveled is 400 meters.

The distance of an object can be defined as the complete path travelled by an object. For example. if a car travels east for 5 km and takes a turn to travel north for another 8 km, the total distance travelled by car shall be 13 km.

Some of the factors include: cost; price elasticity of demand; competition; nature of products or industry; exchange rate fluctuations; distribution system; location of production facility; location and environment of the foreign market; and government regulations in the foreign market.

Analyzing the data

Descriptive analysis, which identifies what has already happened. Diagnostic analysis, which focuses on understanding why something has happened. Predictive analysis, which identifies future trends based on historical data. Prescriptive analysis, which allows you to make recommendations for the ...

What is an example of CAGE framework in real life? ›

A CAGE framework example of cultural difference is how the people of the new market will use and interpret the company's offer. For example, Fanta soft drink is peach flavored in Botswana, and the same product is adapted to appeal to the taste and cultural differences of the Japanese market to be more floral.

The CAGE Distance Framework divides the differences between how countries do business into four categories which help to simplify the analysis. They are Cultural, Administrative, Geographic and Economic and provides a broader view of “distance” among countries than just the obvious one.

SWOT analysis is more focused on the internal factors that are within the control of the business, but can affect its strengths and weaknesses. PESTLE analysis can help businesses identify the trends and changes in the macro-environment that can create or reduce opportunities and threats for the business.

The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic differences or distances between countries that companies should address when crafting international strategies. It may also be used to understand patterns of trade, capital, information, and people flows.

The CAGE framework developed by Ghemawat (2001) measures the distance between two countries according to Cultural, Administrative, Geographic and Economic criteria and was the main indicator for this research.

Distance is separated into four dimensions: Cultural, Administrative and Political, Geographic, and Economic.

As summarized in Table 8.2 "The CAGE Framework", the CAGE (cultural, administrative, geographic, and economic) framework offers a broader view of distance and provides another way of thinking about location and the opportunities and concomitant risks associated with global arbitrage.

Professor Pankaj Ghemawat developed the CAGE Distance Framework to help organizations explore how distance could affect plans for international expansion. He split distance into four key categories: Cultural distance.

Yes, obtaining a CAGE Code is mandatory in order to do business with the federal government or receive federal grant funding. What is a CAGE Code? ( also known as SAMs) The CAGE Code is a five-character ID number used by the Federal Government to identify vendors. CAGE stands for “Commercial And Government Entity.”