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Today the global economy is changing the fundamental natureof governments, businesses, organizations and populations. Inshort, we are no longer constrained by national boundaries, buthave all become part of an interdependent international network.One of the key changes this has triggered is the need tocommunicate effectively in different situations with people fromdifferent cultures and languages. It is now recognized thatlinguistic and cultural knowledge are two of the most vital areasof knowledge that organizations must come to acquire if they are tointegrate, progress and succeed in the marketplace. Conflict isunavoidable. Effective cross cultural communication is critical ifan organization wants to move successfully through conflict thatthey encounter doing global business. Because of this change, it isimportant to understand what communication skills leaders musthave. The two factors that this study explores are the key culturalfactors affecting effective communication and the key communicationissues in conflict resolution.