CAGE Distance Framework
By: A Staff Writer
Updated on: Jul 19, 2024
What: Examines factors creating distance between countries: Cultural, Administrative/political, Geographic, Economic.
Who: Pankaj Ghemawat, global strategy professor.
Why: Helps entrepreneurs assess risk and ease of doing business when entering new foreign markets.
When: During market selection, planning expansion, or negotiating cross-border partnerships or acquisitions.
How:
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- Score target countries vs. your home base along the CAGE factors.
- The greater the distance, the greater the adaptation needed.