CAGE FRAMEWORK INDIA AND JAPAN

The CAGE Framework identifies Cultural,

Administrative, Geographic, Economic differences or
distances between countries that companies should
address when crafting international strategies. It may
also be used to understand patterns of trade, capital,
information and people flows.

1.Cultural Difference
Cultural difference are the various beliefs,
behaviours, languages, practices and expression
considered unique t members of a specific race or
national origin. Following are the cultural difference
between India and Japan.

a) Language
India- Hindi, Majority can speak English and it is the 2nd
most spoken language.
Japan- Japanese, only 10% speak English
b) Religion
India - Hinduism, Buddhism, Jainism, Sikhism
Japan – Shinto, Buddhism

c) Work Culture
India – Business > Relationship
Japan – Relationship > Business

2.Administrative Difference
Administrative difference would help to
identify current and historical political and legal
associations between trading partners that might
favour or impede business relationships.

a) Corruption
India- High compared to Japan
Japan – Low compared to India
b) Legal System
India- Common law is based on English Model
Japan – Civil law is based on German Model

c) Government Type
India- Federal Republic
Japan- Constitutional Monarchy

d) Currency
India – Rupee
Japan - Yen

3.Economic Differences
Economic distance would observe the
fundamental differences which relate to income,
distribution of wealth and purchasing power in each
particular demographic.
a) Per capita Income
India- 7060 dollars (PPP)
Japan- 45470 dollars (PPP)

b) Cost of labour
India- 340.95 INR/Day
Japan – 847.00 JPY/ Hour

c) Economic Size
India - 7st largest
Japan – 3rd largest

d) Availability of Human Resources

India- 65%
Japan- 62.57%

4.Geographic Difference
Geographic Distance describe physical
distance which separates trading partners. Even
though modern digital technology has shrunk the
distance in terms of communication time, company is
still required to visit their partners in terms to better
understand the partner operation model.

a) Physical Distance
India- 1,269,219 sq mi
Japan- 145,936 sq mi

b) Time zone
India –IST is 5hours ahead of UTC
Japan- JST is 9 hours ahead of UTC

c) Climate
India- Tropical monsoon climate, tropical wet and Dry
Climate
Japan- Tropical in south to cool and tempered in north.

d) Transportation
India- Road & Rail are mostly used
Japan- Railways play a major role