ABSTRACT
In order to understand how organizations can best use their multicultural employees' skills, it is important to first understand what multicultural employees contribute to international business. This chapter explores multiculturals' impact on five international business activities – international teams, intercultural negotiations, international assignments, mergers and acquisitions (M&A), global leadership and ethics illustrated – with examples about Indra Nooyi and Carlos Ghosn. In cross-border alliances and M&A, multicultural managers may influence out-comes in several ways and at different stages of the process. A key asset of multiculturals is their greater cultural empathy, perspective-taking skills and ability to bridge cultural gaps. These skills are important before the alliance or merger takes effect, during the due diligence and negotiation stages. The purpose of cultural due diligence is to evaluate factors that influence the organizational fit, to understand the future cultural dynamics as the two organizations merge, and to prepare a plan for how cultural issues should be addressed if the deal goes forward.
