What is NOT true about cultural diversity? Companies may gain competitive advantages by bringing together people of diverse backgrounds. Cultural diversity is most successful when domestic and foreign firms establish joint ventures. O Cultural diversity may help a company gain deeper knowledge about products and services. The process of bringing people of different national cultures together is often difficult.

1. **Examine Each Statement:** - **Statement 1:** "Companies may gain competitive advantages by bringing together people of diverse backgrounds." This statement is true since diversity often brings a range of skills and perspectives that can lead to innovative ideas and competitive advantages. - **Statement 2:** "Cultural diversity is most successful when domestic and foreign firms establish joint ventures." This statement is not necessarily true. Cultural diversity, as a concept, applies to various organizational settings and is not limited to joint ventures between domestic and foreign firms. Success in leveraging cultural diversity can occur in many different types of organizations, not just joint ventures. - **Statement 3:** "Cultural diversity may help a company gain deeper knowledge about products and services." This statement is true because a diverse workforce can contribute varied insights into market needs and customer preferences, thereby enhancing product and service development. - **Statement 4:** "The process of bringing people of different national cultures together is often difficult." This statement is also true since cultural differences can lead to communication and management challenges in bringing together individuals from different backgrounds. 2. **Conclusion:** The statement that is NOT true about cultural diversity is: \[ \text{"Cultural diversity is most successful when domestic and foreign firms establish joint ventures."} \]