Imagine that you are an American sports apparel manufacturerthinking of expansion. You currently sell your...

Imagine that you are an American sports apparel manufacturer thinking of expansion. You currently sell your product through licensed agreements with a third-party vendor in the United Kingdom and Canada. You are thinking of expanding to another country and have whittled the list down to two countries: Australia and Spain.

Using Ghemwat's CAGE framework, illustrate which country you believe would be most advantageous, considering the relative distance both nations have to the United States.

Expert Solution

In terms of the Ghemwat's CAGE framework, the relative distance/CAGE distance of the United States from Spain is 3173 and Geographic distance is 7437 km. Whereas, CAGE distance of the United States from Australia is 4583 and geographic distance is 14,802 km. Therefore, it can be said that the CAGE framework is can be effectively used to select Spain as the best destination to expand among the two countries Spain and Australia.

keosha answered 2 years ago

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