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Academic Paper from the year 2018 in the subject Leadership and Human Resources - Miscellaneous, grade: 1,3, Johannes Gutenberg University Mainz (Wirtschaftswissenschaften), language: English, abstract: Cross border activities of multinational companies face the problem of culture. The environment of international companies include several societies which may include very different cultures. Therefore, there is a very high probability that different cultures will clash during the activities of multinational. Due to the growth of multinational companies and the globalization of markets, it is necessary to constantly attract managers and employees that are suitable and able to adapt to the multicultural environment. Numerous statistics indicate that demographic diversity in the workplace is a worldwide trend. In the United States, for example, the current labour force is older, more gender balanced and contains more ethnic minorities than in past years. These workplace changes are projected to continue to the point where women will slightly outnumber men and where there will be equal numbers of white and non-white employees in the year 2050.The term "diversity" has been part of organizational and management literature for over twenty years. Indeed, the area is characterised by ambiguities, contradictions and uncertainties. This is why we are now more and more aware of its increasing importance in the private sector. In the context of this paper the effects of cultural diversity will be discussed along with the question, whether multiculturalism in international companies is the basis for better opportunities in competition to meet the challenges on a global scale. Another question that shall be answered is, to what extent cultural diversity management can lead to competitive economic advantages. For this purpose, the fundamental terms are interpreted first in the second chapter. The following chapter will address opportunities, risks and success factors, considering multiculturalism in international companies. In the last chapter, the stages of team development are illustrated using the "Tuckman Group Development Model".