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level: W04 Cross-national institutional diversity

Questions and Answers List

Question	Answer
Cultural distance: Languages differ as long with ethnicities, religion, values and norms.	What does the C stand for in CAGE
Administrative distance: Differences in legal rules, political risk and instability, government policies, and corruption level.	What does the A stand for in CAGE
Geographic distance: Physical remoteness, lack of a common border, lack of sea or river access, size of country, weak transportation or communication links, climates	What does the G stand for in CAGE
Economic distance: Differences in consumer incomes, costs, and human and natural resources	What does the E stand for in CAGE
The absence of specialized intermediaries, regulatory systems or contract enforcing mechanisms. Occurs on a greater scale in emergin economies. The greater the void, the less chans for a multinational company investing in that country.	institutional void