A CAGE analysis is a framework distinction that incorporates a comparison of the cultural, administrative, geographic, and economic aspects of various nations that businesses must take into account when developing global agendas or strategies. It is crucial to comprehend trade trends, financial data, and the inhabitants of a region in general. Australia, Ireland, and the United States are compared to one another and contrasted in this essay. The goal of this research is to make a suggestion regarding which of these two nations the business should continue to take into account for first market expansion.
Harzing and Noorderhaven (2006) state that Australia is culturally closest to the United States despitethe difference in distance while Koen (2004) avers that the Anglo-Saxon model includes Ireland alongside the United States (Bayari)
Power distance is the extent to which the less powerful in the society accept and expect that power is equally distributed.Ireland has a high level power distance and individual in this culture wish for a decrease in the power level. Australian scores low when it comes to this as hierarchy is established for convenience with superiors being always accessible. Managers rely on employees and their teams for expertise with both expecting consultation on important matters and sharing of information. United States power distance alludes to the fact that everybody is unique and social norms controldeviation from the norm (Cavusgil, Rammal & Freeman, 2011).
Ireland has a low uncertainty avoidance power signifying a dislike in formal structure and rule and regulation. This prompts the desire for the certainty distance, which is the extent to, which people can tolerate risks and avoid uncertainty to be much lower than it is (Schneider & Barron 2008). Just like Ireland the United States and Australia also tend to have low uncertainty risk and have socialized their members to accept and be accustomed to it entrepreneurs and managers are prepared to take risks and make decisions quickly. There is a tolerance of different opinions and behaviors and they are not perceived as threats (Cavusgil, Rammal & Freeman 2011).
Masculinity in Ireland has a high score indicating that the society will be driven by competition achievement and success. Australia and the United States are moderately masculine societies as competitiveness, evaluation of wealth; ambition and assertiveness are moderate in nature (Schneider&Barron 2008).
On individualism verses collectivism, Ireland is high on family collectivism signifying importance in expression of pride loyalty and cohesive ness in their families compare to Australia and United States. The country has equally a high level of human orientation and midway when it comes to assertiveness as Irish people are not dominated in interpersonal relationships (Schneider & Barron 2008). Australian and the United States are strongly individualistic societies where ties are relatively lose between people each person focusing on their own self-interest. Competition is the norm and the best are rewarded financially (Cavusgil, Knight, Riesenberger, Rammal & Rose 2014).
Administrative distances between the USA and Ireland and Australia
Ireland, Australian and the United Statesto some extent have administrative systems influenced by AngloSaxons. Here decentralized legal entities authorities representing the state do not interfere with local affairs. Local authorities enjoy a larger autonomy with regard to horizontal relationships. While vertical relationships are limited to local public services (Sadioglu & Ugur 2016).The United States government is constitutionally based federal republic with strong democratic tradition. The administrative decisions comprise of fifty states and one district. The Australian government is a federal parliamentary democracy and a common wealth realm. Its administrative division comprise of six states and two territories (Sadioglu & Ugur 2016). Ireland form of government is a multiparty republic with two legislative housesi.e. the senate and the house of representative.it has the president as the head of state and the prime minister as the head of the government (Edwards, Ranelagh, Fanning, and Boland& Kay 2017)
Geographic distances between the USA and Ireland and Australia
United States is located in North America bordered by North Atlantic Ocean and North Pacific Ocean and sandwiched between Canada in the north and Mexico in the south. It has a geographical coordinate of 38 00 N, 97 00 w. it has a total area of 9,826,675 sq.Km. the land is9, 161,966sq. km and water coverage of 6664,709 and this includes only the fifty states and district of Colombia without overseas land. The area is comparatively about the half size of Russia, three tenths the size of Africa, half size of SouthAmerica, more than twice the size of Europe And slightly larger than china(National Master).
Australia is an Oceania continent between the IndianOcean and the south pacific ocean.it has a geographical coordinate of 27 00 S, 13 3 00 W with a total area of 7,741,220. Sq. km. the land coverage is 7,682,300 sq. km while water coverage is 58,920 sq. km.the country is slightly smaller than the United States.Ireland is slightly larger than Virginia west with a land area of68,890 sq. km and water coverage of1,390 sq. km and a total of 70,273 sq. km. Its geographical coordinate is53 00 N, 8 00 W,its location is Western Europe(National Master).
Economic distances between the USA and Ireland and Australia
The United States has a powerful technological and large economy with a GDP of $ 49,800. It is a market oriented economy where private individuals and business firms make most decisions while governments buy the required goods and services that are predominantly in the private market. However the economy has declined within thelastdecade and it ranked nineteenth on economic freedom. Fortieth in trade freedom and seventeenth in freedom from corruption. In 2016 the United States finished in the second tire in relation to the freesteconomies of the world (Cavusgil, Rammal & Freeman 2011).
Australian economy encounter continuous growth featuring low unemployment rates, containedinflation, low public debt with a firm and stable financial system. It ranks fifth in economic freedom and lead the world in financial freedom (Cavusgil, Rammal & Freeman 2011). The Irisheconomy has outstripped Americas in the last decade and its fundamentals remain strong, with solid support on property protection and enforced rule of law by an independent judiciary. In 2015 it was ranked ninth in economic freedom (miller 2016)
Executive Recommendation
ComparingAustralia and Ireland it is advisable to expand the company’s market in Australia. Reasons include a flexible power distance and the people in authority can be easily accessed. Individualism meaning that a person opinion cannot be over shadowed by another.
The other reason is the economic advantages available in Australia in terms of continuous economic growth coupled with low levels of uncertainty meaning thatmore often individuals there are risk takers.
Table 1
Australia versus Ireland from the perspective of U.S. companies
U.S.A Australia Ireland
Cultural
Language:
Ethnicities:
Religion:
Social Norm/values:
Other:
Languages include 82.1% English, 10.7& Spanish, 3.0% Indo-European, 2.7%pacific island and 0.7% others.
Religion: 51.3% roman catholic23.9% Mormon, 1.6%other Christians, 1.6% Jewish, 1.7% Buddhist, 0.7%msulim and 0.6% 0thers.
Social norm and values: tolerance.
Languages include 76.6% English, 1.6% mandarin, 1.4% Italian, 1.3%arabic, 1.2% Greek, 1.2% Cantonese, 1.1% Vietnamese, 10.4% other and 5% unspecified.
Religion: 28.8% protestant, 25.3% catholic, 2.6% eastern orthodox, 2.6 others.
Social norms and value: tolerance.
Languages English and Irish,
Religion: protestant and Catholics.
Social norm: community and family are important.
Administrative
Regional Trading:
Currency:
Type of Government:
Legal System:
Corruption index:
Trade with Europe, Asia and north America.
Us dollars as currency. Government is a constitutional based republic.
Common law at federal level and state legal system based on common law. Napoleonic civil law and judicial review.
Corruption index 71 by 2012.
Trade with fellow European countries.
Currency is Australian dollars.
Government is a federal democracy.
Common law legal system based on the English model.
Corruption index142 by 2012
Trades with Asian, Europe and Africa.
Currency is LCU.
Government: president head of state and prime minister head of government and elected parliament.
Legal system is common law.
Corruption index17.
Geographical
Physical Distance from US coasts
Land Area/Border:
Time Zones
Climate:
Environmental issues:
Internal Navigability:
Bordered by North Atlantic ocean and NorthPacific ocean.
Land area 9,161,966 sq. km. Time zone is 14 hours behind Australia
Climate is mostly temperate, arid and semi-arid
Environment issues include air and water pollution, limitednatural freshwater.
Internalnavigability is by land, air and water.
Continent between Indianocean and pacific ocean
Land is7, 682,300.
Time zone is 14 hours a head of America.
Climate is generally arid and semi-arid, temperate and tropical.
Environmental issues include soilerosion,soil salinity, decertification and limited fresh water.
Internalnavigability is by land, air and water.
North western part of Europe.
Land 68,890 sq. km
Time zone is five hours behind new york.
Climate is temperate maritime.
Environmental issues pollution and limited fresh water.
Internal navigability is via land, sea and air.
Economic
Economic system: GDP- PPP/ per C. / growth rate: $
Natural resources:
Human Resources:
Infrastructure:
Population:
Human Development Index:
Internet penetration:
GDP $ 49,800.
Natural resources are energy, gas, electricity, oil and petroleum.
Human resources 155.4 million by 2013.
Infrastructure population: major cities are densely populated.Human development index 0.77%.
Internet penetration is 505 million users by 2012.
GDP 3.5%.
Natural resources are gas, energy, electricity, oil and petroleum.
Human resources 12.44 million by 2013.
Infrastructure populationdensely populated cities.
Human developments index:1.09%.
Internet penetration is 17.081 by 2012
GDP $ 45,835.75.
Natural resources natural gas, peat, copper, lead and zinc among others.
Human resources 10 million by 2013.
Infrastructure population
Development index 0.946.
Internet penetration 18 million by 2012.
References
Barron, K. P. (2008). Variational Pragmatics:A Focus on Regional Vrieties in Pluricentic Languages. Newyork: John Benjamin Publishing.
Bayari, C. (2011). Japanese Hybrid Factories in Australia: The Japanese System Transferred. Berlin: LIT Vrlag Munister.
Master, N. (2016, May 10). Ireland and United States Compared. Retrieved May 4, 2017, from National master.com: http://.national master.com/country-info/compare/ireland/uinited-states/geography,
Miller, T. (2016, February 2). 7 Countries Outspacing America Economic Freedom. Retrieved May 4, 2017, from Nationalinterest.org: nationalinterest.org/feature/7-countries-outpacing-america-economic-freedom-15084.v
S. Tamer Cavusgil, G. K. (2014). International Business. Austin: Pearson.
S. Tamer Cavusgil, H. R. (2011). International Business: The New Realities. Austin: Pearon Higher Education.
Ugur, S. &. (2016). Theoritical Foundations and Discussions on the Reformation Process in Local Governments. IGI Global publishers.
