Languages have an essential part in communication, which is important when it come to communication in multilingual companies. People with different native languages might encounter a so-called ‘language barrier’, which can be defined in a simple way as an obstacle to effective communication. Business researches on language see the language barrier as a problem for multilingual companies in that it hinders communication or causes miscommunication. Cross-cultural communication plays a big role in international business, and language is an important element for communication in that it touches upon every aspect in business activities. Language is a factor affecting many international management processes, such as inter-unit communication, subsidiary role and autonomy, social exclusion and power, staff transfer, organizational structure, and control and coordination mechanisms as well as integration processes after Mergers & Acquisitions .In order to see why it comes to obstacles in communication, it is helpful to look, first of all, at the nature of communication itself and, secondly, at the notion of language competence. In general, communication happens when two people come together to exchange information. People communicate when they exchange ideas and share views, talk, ask each other questions, try to convince each other of their own way of thinking, and more. In the ideal world, the people take turns in talking, or communicating. One is speaking, the other one is listening. Speakers and listeners abide by the so-called ‘cooperative principle’. The speaker, on the one hand, tries to make him/her understood and to convey his/her message. The listener, on the other hand, tries to understand what the speaker is communicating in order to react and reply appropriately to the speaker. The listener is on a quest for meaning and puts an effort into finding the meaning.