Today the global economy is changing the fundamental nature of governments, businesses, organizations and populations. In short, we are no longer constrained by national boundaries, but have all become part of an interdependent international network. One of the key changes this has triggered is the need to communicate effectively in different situations with people from different cultures and languages. It is now recognized that linguistic and cultural knowledge are two of the most vital areas of knowledge that organizations must come to acquire if they are to integrate, progress and succeed in the marketplace. Conflict is unavoidable. Effective cross cultural communication is critical if an organization wants to move successfully through conflict that they encounter doing global business. Because of this change, it is important to understand what communication skills leaders must have. The two factors that this study explores are the key cultural factors affecting effective communication and the key communication issues in conflict resolution.