What is Cage model explain in detail?
The CAGE Distance Framework is a tool that can be used to uncover important differences between various countries that companies should take into account when deciding on their strategy. The acronym CAGE stands for Culture, Administrative, Geographical, and Economic.
What does Cage stand for in the cage distance model?
The CAGE Distance Framework identifies Cultural, Administrative, Geographic and Economic (CAGE) differences or distances between countries that companies should address when crafting international strategies.
How do you use the CAGE Distance Framework?
And the first step in doing this is usually to identify those markets with the greatest sales or greatest profit.
What are the 4 components of cage analytical framework?
What is the CAGE Framework? Cage Analysis Explained
- 1) Cultural Distance.
- 2) Administrative Distance.
- 3) Geographic Distance.
- 4) Economic Analysis.
How do you model a cage?
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.
What are the four dimensions of distance?
The four CAGE dimensions are: Cultural Distance. Administrative Distance. Geographic Distance.
What is the significance of the CAGE framework in international business?
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.
How do you use a cage comparator?
How to use the NYU Stern Globalization Explorer – YouTube
What are the four basic dimensions of distance?
Who developed the cage model?
Pankaj “Megawatt” Ghemawat
Pankaj “Megawatt” Ghemawat is an international strategy guru who developed the CAGE framework to offer businesses a way to evaluate countries in terms of the “distance” between them.
Why is CAGE framework used?
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.