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across these dimensions, the riskier the target foreign market. By contrast, similarities along these dimensions suggest great potential. Com- mon currency, for example, boosts trade more than 300%. Also, types of distance af- fect industries differently. Religious differ- ences, for instance, shape people’s food pref- erences but not their choices of cement or other industrial materials.
Reference : How to choose foreign countries What are the four analytic components of cage analytical framework?The CAGE Distance framework is based around 4 pillars:. Cultural difference.. Administrative difference.. Geographic difference.. Economic difference.. What is cultural distance in the CAGE framework?A cultural difference between countries may be religion, ethnicity, or language. The cultural distance between countries is the first and most important aspect of the CAGE Distance Framework. It's also one of the subjects that are least clear to management.
What are the elements of cage?As summarized in Table 8.2 “The CAGE Framework”, the CAGE (cultural, administrative, geographic, and economic) framework offers a broader view of distance and provides another way of thinking about location and the opportunities and concomitant risks associated with global arbitrage.
What is CAGE framework example?A CAGE framework example of cultural difference is how the people of the new market will use and interpret the company's offer. For example, Fanta soft drink is peach flavored in Botswana, and the same product is adapted to appeal to the taste and cultural differences of the Japanese market to be more floral.
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