This ranges from the company's national managers to all the other employees. The reason for this is quite simple and can be explained with the term "cultural differences" which helps us describe a range of issues on which the approach of national individual employees is different than that of the corporatist counterparts that invest in the country.
The first important cultural difference that comes to mind is, obviously, language. The global environment, through the elimination of many of the previous barriers, is an environment of intense communication between different entities. Technology, with the emergence of the Internet, among other things, has also helped spur a communication incentive never seen before in history. However, language is still an important barrier. There are probably around 1.5 billion English speakers in the world and certainly around 1.2 billion Chinese speakers, but they often don't overlap.
It is the same situation in the case of a foreign company investing in another country in search of cheaper resources: language is often a barrier in communication and a barrier in passing top-down a clear message on the company's intentions, strategic objectives and vision, plans for the future in terms of development and employee relation etc. Language, as a component of cultural differences, through its important role as a communication channel, can be a source of frustration and conflict among global acting entities.
Nevertheless, cultural differences can go a much longer way than cultural differences and can often be related to the individuals' approach towards work, their perspective on life, their perception of time etc. We can agree on the fact, for example, that the Italians and Spanish (and in general all the Latin people) have a very loose approach towards time. It is difficult to perceive a German or Japanese entity, for example, outsourcing in Latin America. It is a relationship that can't properly function exactly because the two cultures have different approaches and perceptions on things.
Conflict situations related to cultural differences can arrive not only between the...
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