Question

use CAGE model ( chapter 2) discus the distances between the four BRIC countries

Answer 1

The CAGE distance framework was introduced by Pankaj Ghemawat, a universirty professor from Barcelona .lt is a tool that can be used to uncover important differences between various countries that companies should take into account when deciding on their strategy.The acronym CAGE stands for cultural geographic administrative and economic. Infact the cage distance framework identifies the cultural geographic and economic differences between countries. It is also used to study and analyze the patterns of trade , information and capital flows(both human capital and manmade capital)

CAGE framework has tremendous importance in the modern world.we can see that economic giants are emerging among the developing countries: Brazil, India, China Russia and South Africa(BRICS)China is already an economic giant,India is on the way,and Brazil and Russia are following. How ever South Africa which was sponsored by China to join in 2011is much smaller.

Let's look at the first four countries (,Brazil, India, Russia and China.).The acronym BRIC was coined by O Niel to represent the countries more than a decade back in 2001.of we use cage framework to analyse ,we will be provided with a broader view of the distance between these nations.

Cultural Differences

Culture as used here refers to the attributes of the society that are sustained mainly by interactions among people.Cultural attributes of the BRICS countries are as follows

India: English language, Westernised elites

China:Linguistic and ethnic homogeneity, Diaspora

Brazil:Ethonic diversity and different languages

Russia:collectivist society,ethnic homogeneity,Difficult language

Administrative distance

Administrative distance attributes encompass laws that typically emerge from a political process and are mandated or enforced by governments.Administrative attra

atteributes of the BRIC nations are as follows

India:Common colonizer,common law,political friendship

China:Ease of doing business, enclave

Brazil:proactive and stable government, good trade relations

Russia:positive bilateral relationship

Geographic distance

The geographic distance of countries that can affect cross border economic-activity mostly grow out of natuaral phenomena.Lt includes the geography of physical transportation as well as the geography of information. Main geographical attributes of BRIC nations are as follows

India:Resources were sourced locally ,Established nation wide distribution network.

,China:Good superior ports and modernisation of Infrastructure

Brazil:Resources were sourced locally.

Russia:well established waterways metros

Economic distance

Economic distance refers to the distance that affect Cross border economic activity through economic mechanisms distinct from their cultural administrative and geographic ones

Main Economic attractions of BRIC nations are as follows

India: specialized labor, profitability, firm strategy and upgrading

China:Larger markets, High income, Labor inputs and productivity, high capital availability.

Russia:High percapita Income

Brazil:High FDI inflow, Low labor cost

Its clear that BRIC nations provide some of the most exciting growth opportunities I'm various industry sectors.