Differences and the CAGE Distance Framework, make a summary of this article.

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Differences and the CAGE Distance Framework, make a summary of this article.




Microsoft Word - Differences and the CAGE Distance FrameworkFeb2012 (c) P This iden mus Beg plot dist Ben wha the Wal The four Eco ankaj Ghemaw 2. Dif s note intro ntify and pr st address w gin by cons ts Walmart ance betwe ntonville, Ar at other type markets tha lmart Intern e CAGE dis r major c onomic. Diff wat / For copyrig fferences an oduces the rioritize the when develo sidering the t’s operatin een each co rkansas. Th es of differe at were prof national’s O tance frame categories: fferences alo ght permissions nd the CAG Pankaj Gh CAGE dist e differences oping cross- e example ng margin ountry’s cap he impact of ence or dist fitable for W Exhibi Operating M ework disag Cultural, ong these di s, please e-mail GE Distanc hemawat tance frame s between c -border strat summarize by countr pital and W f geographic ance can yo Walmart from it 2-1 Margin by Co ggregates di Administra imensions g globecourse@g ce Framewo ework, whi countries th tegies.2 d in exhibi ry in 2004 Walmart’s he c distance is ou identify t m those tha ountry (200 istance or di ative, Geog generally ha ghemawat.com ork1 ich is used hat compani it 2-1, whi 4 against t eadquarters s obvious, b that separat at weren’t? 4 estimates ifference int graphic, a ave a negati m to ies ich the in but ted ) to and ive effe diff enco type ect on man ferences alo ourage rath es of differe  Cultura beliefs, of the organiz religiou values. market effects, busines markets least, tie  Adminis between tenor o exchang differen course, country levels o profitab States i Free Tr as clas unincor  Geogra involve other: o country access t 1 make profitab ny cross-bo ong a limit her than disc ence or dista al distance: values, and game—th zations. Cu us beliefs, r Societies power and both form sses operat s share ling es through l strative dis n countries of current ge between nces along do admin y such as au of corruption ble countrie in a region rade Agreem ssified by rporated terr aphic distan es more tha other attrib y’s physica to the ocean es it clear th ble “countr order inter ed subset o courage suc ance is illus : Culture c d social nor hat shape ultural dista race/ethnicit even diffe d globaliza mally via re e. 4 Interes guistic, reli large diaspo stance: Hi s—colonial relationsh n them—w these dime nistrative a utarchic pol n. In the Wa es, Canada a nal free trad ment (NAFT Walmart, ritory of the nce: The g an just how butes to be al size, wit n, topograph hat the cap ries” is ge ractions, al of CAGE d ch interactio strated by th an be defin rms—the un the behavi ance encom ty, languag er in their ation in wa egulation a stingly, Wa gious and ora. storical an links, free hips—profou which is th ensions mat attributes s licies or we almart exam and Mexico de agreeme TA). And a , Puerto R e United Sta geographic w far two c e considere thin-country hy, and eve ital city of eographicall though in dimensions ons.3 Each o he Walmart ned as the nwritten, un ior of ind mpasses d ge, and soci social attit ays that ha and informa almart’s fo ethnic simi nd political e trade agr undly affe he same as tter a great specific to eak instituti mple, note th o, partner wi ent, the Nor third profit Rico, is ates. dimension countries ar ed include y distances en time zon f each of W ly closer t some case can actual of these bro example. collection nspoken rul dividuals a differences ial norms a tudes towa ave importa ally, on ho our profitab ilarities or, associatio reements, t ect econom s saying th t deal. So, a particul ions and hi hat two of t ith the Unit rth Americ table “count officially n of distan re from ea contiguity, s to borde nes. Exhibit Walmart’s fo to Walmar 2 es, lly oad of les and in and ard ant ow ble at ons the mic hat of lar gh the ted can try” an nce ach a ers, 2- our rt’s Wha Inte grav inte betw econ rela attri diff of o and headqua addition the Uni  Econom labor a econom in avail comple harder f number econom liability procurin distance its enti strategi at the Numb ernational e vitation to eractions. T ween two co nomic size ated to the p ibute). Aug ferences as w one such an economic e arters than n, Canada a ited States. mic distance are the m mic distance lability (or ments, and for Walmar r of data p mic distance y for Walm ng merch e, particular ire internati es in section bers Tell Us economists o describe Thus, the s ountries pre s (a unilate physical dist gmented gra well as unil nalysis that effects on tr the capitals and Mexico e: Consume most obviou e between c lack) of re d organizat rt to do wel points is v e has not b mart. The andise fro rly in terms ional store n 5, which d s have ada trade an implest gra edicts that t eral attribu tance betwe avity mode lateral attrib evaluated c rade. s of any of o share a co er wealth an us (and re ountries. O esources, in tional capa ll in poorer very limite been entire company om China— s of labor co network. W discusses ar apted Newt nd other avity mode trade will be ute of each een them (a els add mea butes. Exhib cultural, adm the unprofi ommon land nd income a elated) det thers includ nputs, infra abilities. It countries— d. Note, h ely or even saves mor —exploitin osts—than i We will re rbitrage. ton’s law internationa el of intern e directly re country) a a bilateral or asures of o bit 2-2 show ministrative table ones; d border wi and the cost erminants de differenc astructure a seems a b —although t however, th n primarily re money b ng econom it makes fro eturn to su of univers al econom national tra elated to the and inverse r country-pa other types ws the resu e, geograph 3 in ith of of ces and bit the hat y a by mic om uch sal mic ade eir ely air of ults hic, D D C A G E Exh Dimensions o Distance/Prox Cultural Administrative Geographic Economic Sour Inter Busi The signi many The you glob mag colo with ties effe orig that such Sim help Thu coun hibit 2-2 Effe of ximity e rce: Pankaj rnational Trad iness School B estimates cor ificant at the 1 y other studie e signs on m ur intuition balized “fla gnitudes of onial ties ar hout them, in generat ects decades ginal coloni t complete h considerat milarities ver p explain fo us, for U.S. ntry is Cana cts of Simila Determina Common la Common re Colony/colo Common cu Differences Physical dis Physical siz Landlocked Common la Economic s Income leve Ghemawat a de Networks: Boston, Februa rrect for unob 1% level but a es, apparently most of the s (although at” world). f some of t re apt to tr or even mo ting cultura s and, in s ial relations globalizatio tions—is ex rsus differe oreign direc companies ada 60 perc arities Versus ant anguage egional trading onizer links urrency s in corruption stance: 1% inc ze: 1% increas dness and border size: GDP (1% el: GDP per ca and Rajiv Ma A Gravity-B ary 2003. bserved thresh are, in a numb due to the cor e estimates h they ca What are the effects— rade almost ore if one al al similariti ome instan ships were on—as in t xtremely un ences along ct investme s that opera cent of the t s Difference g bloc n crease se % increase) apita (1% incr Mallick, “The ased Approac holds for part ber of cases, s rrection in the tab nnot be re probably m —for exam t three time lso account ies! The pe nces, more dissolved r the disappe nlikely anyti many of th ent or comp ate in just o time (and 10 s on Bilatera rease) Industry-Lev ch,” working icipation in tr smaller than t le probably econciled w more surpr mple, that c es as much ts for the ro ersistence o than a cent reinforce th earance of t ime soon. he same dim panies’ fore one foreign 0 percent of al Trade Chan +42% +47% +188 +114 –11% –1.1% –0.2% –48% +125 +0.8% +0.7% vel Structure paper, Harva rade and are those reported y accord wi with a ful rising are t ountries wi h as countri ole of colon of such lar tury after t he conclusi the effects mensions al eign presenc country, th f the time it 4 nge in Trade % % % % % % % % % % % of ard all d in ith lly the ith ies nial rge the on of lso ce. hat t is the cros tran and is th mat Iden Hav dist fram acco rega of th Exh Cou (bila Cou (uni United Kin ss-border i nsactions, p even the in hat differen tter in signif ntifying and ving highlig ances, the r mework to ounted for ard by ident he CAGE c hibit 2-3 The untry pairs ateral) untries ilateral) ngdom).5 Gr nteractions atent citatio ncidence of nces betwee ficant, predi d Prioritizin ghted the pe rest of this identify a in developi tifying bilat categories. CAGE Fram Cultural Distance  Different languages  Different ethnicities; lack of connective ethnic or social networks  Different religions  Lack of tru  Different values, nor and disposition  Insularity  Traditional ravity mode as divers ons, immig wars! The b en countries ictable way ng Differenc ersistent imp section foc and prioriti ing global s teral and un mework at the Admin Distan ust rms, ns  Lack o ties  Lack o region bloc  Lack o curren  Politic lism  Nonma econom bias vs bias)  Lack o membe interna organiz  Weak corrup els have also e as equit grant flows, basic conclu s—and diff ys. ces pact of cros cuses on us ize the dif strategies. E nilateral fac e Country Le nistrative nce of colonial of shared al trading of common cy al hostility     arket/closed my (home s. foreign of ership in ational zations institutions, tion      o been adap ty trading, air traffic, usion from ferences in ss-country d sing the CA fferences t Exhibit 2-3 ctors to cons evel Geographic Distance  Physical dista  Lack of land b  Differences in zones  Differences in climates / dise environments  Landlockedne  Lack of intern navigability  Geographic si  Geographic remoteness  Weak transpo or communic links pted to expla e-commer , phone cal this literatu differences— differences AGE distan that must helps in th sider for ea c Eco Dis ance border n time n ease s  Ric diff  Oth diff cos of n reso fina reso hum reso infr and info kno ess nal ize ortation ation  Eco  Low inc 5 ain rce lls, ure — or nce be
Answered 2 days AfterApr 21, 2023

Answer To: Differences and the CAGE Distance Framework, make a summary of this article.

Sanjukta answered on Apr 23 2023
29 Votes
International Business
The word CAGE is mainly an acronym for Geographical, Cultural, and Administrative as well econ
omic distance. Furthermore, CAGE distance framework tends to enable companies for analysing markets within different countries. On the other hand, this author has introduced the readers to the CAGE distance framework which is mainly used for prioritizing and identifying the differences between countries that firms should address when developing the strategies of the cross-border (Ghemawat & Altman, 2016).
There are some of the major advantages of the CAGE Distance framework such as it is comprehensive in the categories, it forces consideration on a wide range of issues that can impact an individual, it enables discussion to take advantage of the differences along with it provides a crystal clear look at the partialities that prevails in terms of entering into the marketplace. The author have stated that with the help of this framework the important information are captured that one needs to consider when entering a new marketplace but it can be also applied for entering a different type of industry.
The CAGE framework can also be used to contrast...
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