Pankaj Ghemawat, “Distance Still Matters,” Harvard Business Review 79, no. As summarized in Table “The CAGE Framework”, the CAGE (cultural. Pankaj Ghemawat. What Are the Real Pankaj Ghemawat. How Global Are The CAGE Distance Framework. Cultural. Distance. rated into the CAGE framework for understanding the differences be- . by Pankaj Ghemawat and Ken Mark, “Wal-Mart’s International.
| Author: | Fauzshura Zulkilmaran |
| Country: | Montenegro |
| Language: | English (Spanish) |
| Genre: | Science |
| Published (Last): | 3 June 2009 |
| Pages: | 67 |
| PDF File Size: | 10.65 Mb |
| ePub File Size: | 1.41 Mb |
| ISBN: | 730-1-70530-861-7 |
| Downloads: | 7016 |
| Price: | Free* [*Free Regsitration Required] |
| Uploader: | Akinris |
Trade practices between countries can be significantly affected by laws and regulations enacted at the national or international level. Comment Name Email Website. How far apart are trading partners in physical terms: By analyzing the possible impact of dis- tance—in all its dimensions—you sweeten the odds of investing in profitable foreign markets.
Related Posts 01 Jun. Ghemawat emphasizes that different types of distance matter to different extents depending on the industry. Leave a Reply Cancel reply Your email address will not be published.
The other day, a doctor was asking me about investment banking and why is it so hot. Retrieved from ” https: The hard reality of global expansion.
Whatever it is… there is no denying the fact that….
CAGE Distance Framework
Around 2, years ago, Greek philosopher Heraclitus of Ephesus had pronounced: From Wikipedia, the free encyclopedia. One of the distinctions between the CAGE Framework fhemawat other country analysis frameworks is its inclusion of bilateral as well as unilateral factors. The table [4] [5] shown below provides more detail on each of the CAGE categories, and how they can manifest themselves depending on whether one is comparing a pair of countries or looking at one in isolation.
Think of international expansion as a movement along a continuum from known markets to less-known markets; a firm can move to more CAGE-proximate neighbors before venturing into markets that are portrayed as very different from a CAGE-framework perspective. Ghemawat offers some advice on how the CAGE Framework can help managers considering international strategies:. Culture happens to be the first facet of CAGE, in terms of the acronym, but it also can be the most practically perplexing facet for managers.
A Financial Statement can be…. Fhemawat impacts of CAGE distances and differences have been demonstrated quantitatively via gravity models.
Pankaj Ghemawat
For example, it can help explain the strength of Spanish firms in many industries across Latin America. The cultural, administrative, geographic, and economic CAGE distance framework helps managers identify and assess the impact of distance on various industries. How to choose foreign countries. Each dimension of CAGE framewoork described below. By using this site, you agree to the Terms of Use and Privacy Policy.
It makes distance visible for managers.
By contrast, similarities along these dimensions suggest great potential. The more two countries differ across these dimensions, the riskier the target foreign market.
Lack of colonial ties Lack of shared regional trading bloc Lack of common currency Political hostility. Also, types of distance af- fect industries differently. This has been one of the biggest barriers, for instance, in the way of U. Landlockedness Lack of internal navigability Geographic size Geographic remoteness Weak transportation or communication links. Is value creation ghhemawat Venture Capitalists a reality or myth?
Application of the CAGE framework requires managers to identify attractive locations based on raw material costs, access to markets or consumers, or other key decision criteria.
One method to conduct quantitative analysis of this type is to discount specifically, divide raw measures of market size or potential with measures of distance, broadly defined.
CAGE Distance Framework – Wikipedia
Views Read Edit View history. This page was last edited on 12 Septemberat For instance, a firm maybe most interested in markets with high consumer buying power, so it uses per capita income as rramework first cag cue. If you know the enemy and know yourself, you need not fear the result of a hundred battles. Distinct cultural differences are observed around the following dimensions: Because they affect fundamental business practices, they often affect the competitive position of firms as well.
It should be a crucial consideration for a consumer goods or media company, but it is much less important for a cement or steel business. Different languages Different ethnicities; lack of connective ethnic framewwork social networks Different religions Lack of trust Different values, norms, and dispositions.