Reference no: EM133299201

Any time a company decides to trade internationally, they are taking a risk. Target's attempted entry into the Canadian market is a prime example. A company must examine the risks and evaluate the opportunity for success before taking the plunge. A common approach is to analyze the cultural, political, and economic risks that can influence the outcome. Another tool that is often used is the CAGE framework.

The CAGE framework examines the difference between the home and foreign target countries on four key dimensions. The bigger the difference, the greater the risk of failure.

The four CAGE dimensions are:

Cultural Distance

Administrative Distance

Geographic Distance

Economic Distance

Let us suppose that Tesla is interested in expanding its business into Europe or South America and has done some preliminary assessment that suggests that the best choice of location would be Germany or Chile.

For your assignment and using the CAGE framework to help decide, which location do you think would be the better choice?. PowerPoint slide presentation of at least 12 slides (including Speaker Notes for the narration) that demonstrates which of these two countries would provide the better opportunity for Tesla.

Slides should contain concise bullet points and/or charts and diagrams. There should not be a lot of text on the slides since that is difficult for the audience to read. Instead, commentary in the form of Speaker Notes should be provided in the Notes section. The commentary should be substantive and detailed. It should explain the key takeaway information for each slide. The presentation should include an introduction, analysis of each of the CAGE dimensions, CAGE matrix of results, Summary, and Recommendations.