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Distance Factors and Croatian Export Obstacles in the EU15: CAGE Approach


  • Helena Miloloza

    () (Faculty of Economics and Business University of Zagreb, Zagreb, Croatia)


For long-term sustainability of any enterprise, it is required to observe each market separately and systematically modify business approach to prevailing conditions in each. However, adaptation to each market can be a complex affair that requires certain financial costs but ignoring distinguishing criteria leads to reduction in revenues and undermines long-term profitability. Time saving and cost-effectiveness can be achieved by application of The CAGE Distance Framework - a model that analysis all diversities between two or more countries. Croatia did not yet utilize the benefits that European Union membership provides nor did significantly improved its international business. It is obvious that Croatia faces difficulties in the strategic approach to prospective foreign markets. Therefore, emphasis of this article is on analysis and identification of the distinguishing factors between Croatia and the EU15 in order to facilitate and enhance cooperation among them in the future. Throughout the analysis of Croatian export from the beginning of the economic crisis, this article gives an overview of international collaboration among Croatia and the EU15 and comparative analysis by using The CAGE Distance Framework. This analysis has confirmed significant fluctuations, unexploited potential and problems of the Croatian economy in all dimensions of The CAGE model.

Suggested Citation

  • Helena Miloloza, 2015. "Distance Factors and Croatian Export Obstacles in the EU15: CAGE Approach," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage:, vol. 13(3), pages 434-449.
  • Handle: RePEc:zna:indecs:v:13:y:2015:i:3:p:434-449

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    References listed on IDEAS

    1. Andrew B. Bernard & Marco Grazzi & Chiara Tomasi, 2010. "Intermediaries in International Trade: direct versus indirect modes of export," LEM Papers Series 2010/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Michael E. Waugh, 2010. "International Trade and Income Differences," American Economic Review, American Economic Association, vol. 100(5), pages 2093-2124, December.
    3. Andrew J. Cassey & David W. Holland & Abdul Razack, 2011. "Comparing the Economic Impact of an Export Shock in Two Modeling Frameworks," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 623-638.
    4. Alam, M S, 1995. "A Theory of Limits on Corruption and Some Applications," Kyklos, Wiley Blackwell, vol. 48(3), pages 419-435.
    5. Thomas Hutzschenreuter & Johannes C. Voll & Alain Verbeke, 2011. "The Impact of Added Cultural Distance and Cultural Diversity on International Expansion Patterns: A Penrosean Perspective," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 305-329, March.
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    More about this item


    global market; CAGE distance framework; Croatia; The EU15; export;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration


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