ABSTRACT
The greater the distance, the lower the success rate. P. Ghemawat developed the CAGE Framework to be able to evaluate international markets on the basis of the four said distances, as well as with analytical tools. Interaction between people is often based on their cultural background. Differences in religion, race, social standards and language can create a huge distance. Some aspects are very clear, for example language. The greater the distance, the more difficult it is to do business. It is, however, not only the actual distance in kilometres that makes doing business more difficult, but also the size of the country, distances to the border, access to waterways and oceans are important. The transport and communications infrastructure plays an important role in doing international business when it involves geographical distance. The welfare and income of the consumers is the most important attribute when it involves economic distance.
