CAGE analysis categorizes distance into four dimensions. Which of the following lists those dimensions?

CAGE analysis categorizes distance into four dimensions. Which of the following lists those dimensions?

• A. Culture, Administration, Geography, and Economic dimensions.
• B. Culture, Administration, Geography, and Political dimensions.
• C. Culture, Administration, Geography, and Economic dimensions.
• D. Culture, Geography, Economic, and Legal dimensions.

Answer: (C)

The four distance dimensions in CAGE are Culture, Administration, Geography, and Economic. This framework measures how far apart two countries are along these axes to explain differences that affect trade and investment. Culture captures language, values, and social norms that influence consumer behavior and business practices. Administration reflects governance, regulatory differences, and policy environments that affect barriers to entry and ease of doing business. Geography includes physical distance, transportation costs, time zones, and climate factors. Economic distance looks at disparities in income, purchasing power, market size, and cost structures. That combination—Culture, Administration, Geography, and Economic—is the standard set used to describe cross-border distance. If a option swapped in Political or Legal for Administration, or replaced Economic with Legal or Political, it wouldn’t align with the established CAGE framing.

The four distance dimensions in CAGE are Culture, Administration, Geography, and Economic. This framework measures how far apart two countries are along these axes to explain differences that affect trade and investment. Culture captures language, values, and social norms that influence consumer behavior and business practices. Administration reflects governance, regulatory differences, and policy environments that affect barriers to entry and ease of doing business. Geography includes physical distance, transportation costs, time zones, and climate factors. Economic distance looks at disparities in income, purchasing power, market size, and cost structures.

That combination—Culture, Administration, Geography, and Economic—is the standard set used to describe cross-border distance. If a option swapped in Political or Legal for Administration, or replaced Economic with Legal or Political, it wouldn’t align with the established CAGE framing.