Cage Distance Analysis Kenya-Russia

In: Business and Management

Submitted By Koske
Words 1044
Pages 5




11TH FEB. 2015


Foreign investment can be particularly challenging. In order get it right, the use of tools and evaluations is critical. In this document, based on the CAGE framework, we analyze distances between Russia and Kenya, and assess how they impact business establishment and operations in the latter.
One of the most important things to take into account is the culture. We noticed that the two countries have very distinct and diverse cultural dimensions. They do not have a common language i.e. Russia has
Russian as it official language while Kenya has English and Swahili, or have any shared ethnicity despite
Russia having 185 and Kenya 42 ethnic groups. Religious disparities are also evident in these two economies. The Russians are largely unbelievers with the Russian Orthodox being the dominant religion whereas Kenyans are largely Christians. Despite these differences, the Muslim population in both countries is significantly represented but their marginalization makes them insignificant on an investment front.
Finally, the social norms and values in both countries are quite similar, with the similar concepts of family, societal upbringing and gender roles.
When evaluating both countries at the administrative level we encounter that they do not share a common trading bloc, but they separately participate in distinct blocks like EAC, COMESA and AGOA (Kenya) and
Eurasian Federation (Russia). The currency in both countries is different (Kenyan Shilling and the ruble for
Russia) and they do not share any common colonial link (Russia was never colonized as Kenya under the
UK) and no common legal origin. In addition, both countries do suffer…...

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