2. Cultural diversity has displayed extensive the complex consequences. Concerning the positive effects, it is possible for one to generate arguments about its valuable contribution to the society. Firstly, about the long-term perspective, it is evident that all the positive impacts contribute to sustainable differentiation by developing higher creativity, innovation, as well as productivity. At the same time, cultural diversity has its shortcomings. The negative effects of cultural diversity can be classified into various levels in an organization. Adverse impacts on the cognitive as well as behavioral level can be associated with individuals. While at team levels, the negative effects may manifest themselves into the problems of communication. (An Analysis of Cultural Diversity and Why Does it Matter) Method used: Explanation:​