CAGE Framework

Question 1

What is the CAGE Framework

Answer 1

Describes differences between firms’ home countries and the countries where the firms compete

Question 2

List the different types of distances that can cause problems

Answer 2

1. Cultural (languages, religions, social networks) - can complicate communication and trust-building
2. Administrative - Could result in unfriendly trade policies
3. Geographic - physical proximity, impedes communication
4. Economic - Differences in income, buying power, and the costs of resources. May deter product standardization and affect the elasticity of demand