“Distance Still Matters” is an influential Harvard Business Review article. In this work, Ghemawat proposes the CAGE distance framework that. Harv Bus Rev. Sep;79(8), , Distance still matters. The hard reality of global expansion. Ghemawat P(1). Author information: (1)Harvard . STIll MATTERS The hard reality of global expansion. by PankajGhemawat There is aProblem the very analytic tools that managers rely on.

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Watch out are companies that find geography a barrier to trade are often expected to switch to direct investment in local plant and equipment as an alternative way to access target markets. But other gemawat related to distance, matter even more e.

Author mentions theory of gravity that quantifies various attribute of distance and its impact on change in international trade. Why does Distance Still Matters matter? We provide a free online form to document your learning and a certificate for your records. This framework can help to identify the ways in which potential markets may be distant from existing ones. Barriers to foreign competition by: Colony-colonizer had different bonding amoung countries which has given a soft corner for companies expanding in these countries.

Typically it depends on size of per capita GDP. Business Economics Macroeconomics Article Review: Product pricing will be adjusted to match the corresponding currency. Request an e-inspection copy. Already read this title? Toggle navigation Additional Book Information. In recent years the integration of European Union is a classic example of the effort to diminish administration and political distance.

For example set up of Wal-Mart in India is different business than setting up in Canada.


No generic book summaries, but the specific content you need to ace your exams. Similarly Red color means beautiful in Russia where as in rest of world it has different connotation.

Companies routinely overestimate the attractiveness of foreign markets. The Mayters Reality of Global Expansion. Please accept our apologies for any inconvenience this may cause. Description Table of Contents Author s Bio. What students say about Stuvia. That’s because they have to replicate their existing business model to exploit their competitive advantage as it depends on cost and quality of recourses.

Add to Wish List. Avoid resits and achieve higher grades with the best study guides, textbook notes, and class notes written by your fellow students.

This article provides interesting research data on how different distance attribute affects international trade, most of which gets factored in while setting up a distribution network for business. Then, he demonstrates the usefulness of the framework with a practical case of a company that identified a better market for expansion by factoring in the effects of distance. In olden days historical and political associations shared by countries greatly affect trade between them. Thanks to the study guides written by fellow students specifically for your courses, you will never miss a trick when it comes to your exams.

Pankaj Ghemawat’s Ghemswat Still Matters: More courses of Bedrijfskunde – Vrije Universiteit Amsterdam. Add to cart – Free. Competitive advantage and strategy in an international business.

Distance still matters. The hard reality of global expansion.

A local area network, wide area network, and worldwide. They should have localized the TV for the contents for English, and edited to suit the audience. The CAGE framework of distance presented here considers four attributes: The rule of thumb is farther you are from a country, the harder it will be to conduct business in that country.


Documents Flashcards Grammar checker. He hired a local leader who could relate to the consumer. This influences the cost of transportation. Appendix S1 — Examples of alpha hulls calculated for the observed. The rise and fall of species: CPD consists of any educational activity which helps to maintain and develop knowledge, problem-solving, and technical skills with the aim to provide better health care through higher standards.

Distance still matters. The hard reality of global expansion.

For Instructors Request Inspection Copy. In this work, Ghemawat proposes the CAGE distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. Earn while you study. The Human Family Tree Assignment. In the opening example when owner of New Corporation, Rupert Murdoch decided to buy license to broadcast Star TV in Asia it was a high profile disaster because it ignored cultured distance.

Her research is in management and strategy, with a particular focus on cultural industries. Earn hundreds of dollars each month by selling your ,atters material to your fellow students.

Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories.