Final answer:
Humor does not always easily cross cultural boundaries in business due to different cultural norms and understandings of what constitutes humor. Diversity training can help mitigate misunderstandings and prejudices in a global workplace, promoting better teamwork. In formal contexts, humor should be used cautiously to avoid miscommunication.
Step-by-step explanation:
In business interactions with people from diverse backgrounds, humor does not always easily cross cultural boundaries. While humor is a universal human experience and cultural universal, what is considered humorous can vary greatly from one culture to another. For instance, while a physical comedy like someone tripping may incite laughter in some Western cultures, it might not be taken as humorously in others, which could value restraint and poise.
Misunderstandings can arise in cross-cultural interactions due to differing norms around communication styles, such as directness or indirectness in business dealings. Consequently, in formal business contexts, humor and sarcasm are often better avoided due to the risk of misunderstanding. Still, humor can play a positive role in building relationships and easing tensions when used with an awareness of and sensitivity to the diverse backgrounds of colleagues and clients.