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Metaphors such a s “the world is flat” tend to suggest that distance no longer matters—that information technologies and, in particular, global communications are shrinking the world, turning it into a small and relatively homogeneous place. But when it comes to business, that assumption is not only incorrect; it is dangerous.
Ghemawat analyzes distance between countries or regions in terms of four dimensions— cultural, administrative, geographic, and economic(CAGE)—each of which influences business in different ways. 1
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