MGT 112 CAGE Exercise

Name: _________________________________
Use the CAGE framework to examine how India and China compare, from the perspective of a
U.S.-based company. Instead of “distance” which can often be thought of as negative, think of
ways in which one country or the other is attractive in respect to the factor.

India vs. China from the perspective of U.S. companies

Country Cultural Administrative Geographic Economic

Attractions Attractions Attractions Attractions
Hindi Tariffs on Central Asia Large-
India + +
U.S. goods
+
+ Large
+
workforce
+ Growing Country + Large
+ Spirtual Financial + Atlantic Customer
Markets Ocean segment
+ U.S. Ally + Central Hub + Low
+ Curry for Middle minimum
East wage
+ IMF Countries + Emerging
+ Republic Financial
markets

Madrin Tariffs on Far East Large

China + +
U.S. goods
+
+ Large
+
Workforce
+ Strong Country + Large
+ Toaism Financial + Pacific Ocean customer
Institutions + Central Hub segment
+ U.S. Ally for Asian + Low
+ Communist countries minimum
wage
+ IMF + Large
+ Rice Financial
Markets
I would chose to expand to India. India has a large population and area for development. India does not
have as strong of financial institutions as China which draws more risk for gaining investor but allows
more opportunity to gain market power in an emerging economy.