Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?
A) one that is much poorer than the country where Badlands has its headquarters
B) one that is in the same trading bloc as Badlands' home country
C) a country that does not share the same currency as Badlands' home country
D) the country that is the greatest physical distance from existing Badlands facilities

Question

Quizplus · Accepted Answer

Most of the costs and risks involved in expanding beyond the domestic market are created by distance. Distance not only denotes geographic distance (in miles or kilometers), but also includes, as the CAGE acronym points out, cultural, administrative and political, and economic distance.