Comprehensive and Detailed Explanatio n:

Competitive Advantage – Diverse teams bring broader perspectives, creativity, and innovation,

leading to enhanced problem-solving and decision-making, which gives organizations a strategic

edge in the global market.

Changing Labor Force Demographics – Global organizations must respond to increasing workforce

diversity, driven by global mobility, migration, and aging populations. Recognizing and preparing for

this shift is a strategic imperative.

GPHR Study Guide Extract – Strategic Global Human Resources / Cultural Diversity and Global

Workforce Trends:

“Cultural diversity fosters innovation and enables organizations to respond effectively to diverse

customer needs. Global demographic shifts, such as aging populations and increased migration,

necessitate inclusive strategies to remain competitive.”

Legal compliance (AAP) is more reactive and location-specific, not strategic from a global HR

perspective.