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CAGE Distance & AAA Global Strategy

Also known as: CAGE Framework · Adaptation-Aggregation-Arbitrage · Semi-Globalization

The world is semi-global; manage Cultural, Administrative, Geographic, and Economic distance — don't assume it away.

Argues borders still matter and cross-border value depends on distance across four dimensions (CAGE). Firms respond with three global strategies — Adaptation (adjust locally), Aggregation (capture scale across regions), and Arbitrage (exploit differences) — chosen to fit the relevant distances.

Core concepts

CAGE DistanceSemi-GlobalizationAAA Strategies

Best when

  • Considering expanding abroad and weighing which markets and how
  • A naive 'one global model' is being assumed

Watch-outs

  • Analysis-heavy; needs real country data
CAGE Distance & AAA Global Strategy · Profit Wayfinder