The CAGE Distance Framework is a framework to define distance between groups in terms culture, administration rules, geographic distance and economic distance:

||[[Cultural Distance]]|[[Administrative Distance]]|[[Geographic Distance]]|[[Economic Distance]]|h
|''Attributes creating distance''|different languages<br>different ethnicities<br>lack of social networks<br>different religions<br>different social norms|absence of colonial ties<br>absence of shared<br>monetary or political association<br>political hostility<br>government policies<br>institutional weakness|physical remoteness<br>lack of a common border<br>lack of sea or river access<br>size of country<br>weak transportation or communication links<br>differences in climates|differences in consumer incomes<br>differences in costs and quality of:<br>• natural resources<br>• financial resources<br>• human resources<br>• infrastructure<br>• intermediate inputs<br>• information or knowledge|
|''Industries&Products affected''|products have high linguistic content (TV)<br>products affect cultural or national identity of consumers (foods)<br>product features vary in terms of:<br>• size (cars)<br>• standards (electrical appliances)<br>• packaging products carry country specific quality associations (wines)|government involvement is high in industries that are:<br>• producers of staple good (electricity)<br>• producers of other “entitlements” (drugs)<br>• large employers (farming)<br>• large suppliers to government (mass transportation)<br>• national champions (aerospace)<br>• vital to national security (telecommunications)<br>• exploiters of natural resources (oil, mining)<br>• subject to high sunk costs (infrastructure)|products have a low value-to-weight or bulk ratio (cement)<br>products are fragile or perishable (glass, fruit)<br> communications and connectivity are important (financial services)<br>local supervision and  operational requirements are high (many services)|nature of demand varies with income level (cars)<br>economies of standardization or scale are important (mobile phones)<br>labor and other factor cost differences are salient (garments)<br>distribution or business systems are different (insurance)<br>companies need to be responsive and agile (home appliances)|
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mbi_public
created
Sat, 07 Jan 2012 15:14:40 GMT
creator
dirkjan
modified
Sat, 07 Jan 2012 15:14:40 GMT
modifier
dirkjan
tags
M21
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creator
dirkjan