PC03: CAGE framework

Question 1

What is the CAGE framework for ?

Answer 1

framework used to identify and prioritize the differences between countries that companies must address when developing cross-border strategies.

• Culture
• administrative
• geographic
• economic

Question 2

CA (GE) details

Answer 2

Cultural differences
- Beliefs, values and social norms that shape behavior of individuals and organizations: religious, race, language

Adiministrative differences
-Historical and political associations: free trade agreements, colonial links, Corruption, Common currency, Nonmarket/ closed economy, weak institutions

Question 3

(CA) GE details?

Answer 3

Geographic differences
How far two countries are from each other, - - contiguity (land border)
- physical size, access to the ocean, 
- time zones, geographic size
- weak transportation/communication

Economic differences

• Consumer income, cost of labor
• availability of resources, infrastructure
• organizational capabilities
• Human resources