A chip company operating in Pakistan,a majority Muslim country,recently got into a public relations nightmare when the public discovered that the firm was using a pork based product in their chips.Many Muslim people do not eat pork.Which of the following aspects of the liability of foreignness is this an example of?
A) Regulatory risks
B) Difference of informal institutions
C) Economic differences
D) Existence of multiple currencies

Question

Quizplus · Accepted Answer

The issue arises from cultural and religious norms, which are informal institutions, highlighting the company's lack of understanding of local customs and beliefs.

A Chip Company Operating in Pakistan,a Majority Muslim Country,recently Got