Connect Online
Share
Contact Me
Download Media Kit
pankaj ghemawat > academic resources
Globalization Notes
Differences in Business Ownership and Governance around the World

Culture, the first element of the CAGE framework presented in the article “Distance Still Matters,” refers to the attributes of a society that are sustained by interactions among people, whereas the administrative element of CAGE refers to aspects that are sustained by state authority: governmental policies (and practices), laws and public institutions. As noted in that article, administrative attributes such as colonial-era ties, preferential trading arrangements, a common currency, political amity, policies of openness, and strong public institutions significantly boost trade. Similar influences also seem to apply to foreign direct investment and other cross-border flows of capital, of people and of information. And while administrative similarities account for most of these influences, selected administrative differences can also generate cross-border activity, e.g., through the exploitation of tax or regulatory differences.

> Read more > Share  this