Question

RL Inc., an American insurance company, attempted to sell life insurance in Spain. However, the company failed to understand that life insurance policies are viewed with a negative attitude in Spain. People are averse to profiting from someone else's death, and hence the company failed to reach its sales target. In this scenario, RL Inc. experienced:
A) economic risk.
B) legal risk.
C) cultural misunderstanding.
D) political uncertainty.

Answer 1

Answer:

The correct option is C

Explanation:

A cultural misunderstanding occurs when something like a word, gesture, social context, object has different meaning in two cultures. sometimes the misunderstandings get resolved, sometimes it leads nowhere and other times it can escalate to anything from love to war.

So here RL Inc. misunderstood spain's culture with american culture and it lead nowhere for them.