I. The 21st century is the century of globalization,

I. INTRODUCTION

Globalization is happening at an unprecedented rate. All
these element has created the needs to communicate between individuals and
organizations from different nations and cultures. The needs of communicative competence
between different cultures has become a requirement for individuals who want to
work efficiently. Edward T. Hall (1959) in his book “The Silent language”, coined
the term “intercultural communication”.

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Although there are many researches about the importance of
intercultural communication and how to achieve an appropriate level of
intercultural communicative competence such as Ball et al. 2010; Beamer and
Varner 2008; Cheng et al. 2008; Ferraro 2010; Gesteland 2005; Martin and
Nakayama 2010). Most professional business and companies still neglecting these
aspects in their organization. They believe that business communication is not
affected by culture differences and that in the business context, the
communication is universal. However, this is evidently wrong as individuals
with different backgrounds and culture will have different perspectives and
reactions to communication. As Harris and Moran (2007) stated “at the root of
the issue, we are likely to find communication failures and cultural
misunderstandings”.

In this research, we will examine the need to study the
theories as well as the practicality of Intercultural communication in
business, then analyze a classic model of intercultural communication which is
being used by many managers in their workplace. Finally, we will propose some
solution about Intercultural communication for businesses in multicultural
settings.

II. THE NEED TO STUDY INTERCULTURAL COMMUNICATION

The 21st century is the century of globalization,
overseas businesses and internationalization of companies are becoming the
norms. To succeed in this global economics settings, one must possess
intercultural communicative competence. For when the economy is globalized,
opportunities can come from everywhere in the world. Therefore, to understand
the values of cultures and the know-how to communicate effectively with individuals
is to have the key to success.

Intercultural communication is not without its challenges,
multinational companies and firms have to deal with multicultural human
resources. Individuals from different nation and cultures have different sets
of values, belief and perception; different educational level and experiences
and thus creating challenges for businesses to operate. If these problems are
left unchecked, could result in potential misunderstanding between colleagues,
destroying relationships and ruining business prospect. Therefore, it is
essential to raise awareness of intercultural communication to ensure efficient
and clear communication to colleagues and business partners, and to limit
conflicts and mistakes when different cultures collide.