Since management philosophies and practices are culturally conditioned, the skill to discern cultural differences that exist across nations and adapt them in managing global firms is very essential for global managers. Managers with cross-cultural skills are essential for the effective management of global organizations. Learning to manage cultural differences will help managers have a global outlook, which is the key factor for the survival and growth of organizations in the global village. The article analyzes the critical dimension of cultural differences across nations; why these cultural differences are important for the effective functioning of today's global business and the importance of intercultural competence training for global managers.

Successful management of today's global firms demands an altogether different mindset, which is sensitive to the cultural differences that exist among nations. For any global firm, there is no single product that satisfies all customers across nations, or a single way of motivating the workforce that will work in all nations, or a single style of negotiation that works well with all stakeholders, or a single way of running the business that is ethically as well as legally acceptable in all countries.

In the era of globalization, the acquisition of a domestic firm by a foreign owner, joint ventures, strategic alliances, franchising, increasing tourism, world trade and global outsourcing will have a profound effect on the relationships and the operations of even the domestic firms. The need of the hour for today's organizations to flourish is to operate with a global perspective in all their activities. Numerous studies were conducted to answer questions like: What competencies and qualities do managers and executives need to possess in order to effectively run global firms? The important implication of globalization is the effect of cross-cultural factors that hitherto were either ignored or taken for granted.

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