The CAGE (cultural-administrative-geographiceconomic) framework is useful for analyzing the different dimensions of the distance between any two countries. Culture refers to the attributes of a society that are sustained mainly by interactions among people, rather than by the state. Differences in languages, ethnicities, religions, values, and norms make cultural distance greater. Administrative attributes encompass laws, policies, and institutions that typically emerge from a political process and are mandated or enforced by the government. Lack of colonial ties, lack of shared regional trade block, lack of common currency, and prevalence of political hostility increase administrative distance. The geographic attributes of countries that can affect cross-border economic activity mostly grow out of natural phenomena, although some human interventions may also be involved. Greater physical distance, lack of land border, and differences in time zones and climates enhance geographic distance. Economic distance refers to differences that affect cross-border economic activity through economic mechanisms. Differences in economic size (GDP), wealth (GDP per capita), cost or quality of natural resources, financial resources, human resources, information or knowledge, and infrastructure heighten geographic distance.