Ghemawat's CAGE Distance Framework

Ghemawat's CAGE Distance Framework is a tool used by businesses to assess the differences between countries that could affect international expansion. "CAGE" stands for Cultural, Administrative (or political), Geographical, and Economic distances. These factors influence how easily companies can operate across borders. For example, cultural differences might include language or social norms, while administrative factors involve laws and regulations. Geographical aspects cover physical distance and infrastructure, and economic differences relate to income levels and market size. Understanding these distances helps companies plan strategies, adapt products, and reduce risks when entering new markets.