Effects of Language Difference on Subsidiary Performance Essay - 1

Effects of Language Difference on Subsidiary Performance - Essay Example This research will begin with the statement that multinational enterprises investment firms struggle to diversify in their field of investment in foreign countries. This is because they focus on hiring and recruiting new employees of different language backgrounds in their respective nationalities. Language can be termed or described a chosen unique system of conceptual symbols that let individuals communicate effectively. Language generally is the greatest used mediator which facilitates understanding and relation between management, employees, and customers of every given business. A multi linguistic human resource usually gives out benefits, for example, a larger and wider range of perspectives. This workforce also gives a greater competitive ability generally in the marketplace globally. Multinational enterprises that are venturing into new economies are faced with the new language and cultures which should be overcome to ensure organizational goals and objectives are achieved. M ultinational enterprises can be defined as financial firms and entities that are involved in the supply of services and goods in at least two or more economies. These corporations are large in size and they are involved in different forms and fields of business activities in different countries. Increased competition, venturing into new business form and globalization has forced most business firms alongside with their employees to interact with different nationalities. This has been caused by variation in availability of resources. Surveys show that languages play an important part in communication in multinational enterprises. A workforce with different language background may encounter language barrier if working together. This leads to misunderstanding it also suggests that language barrier causes ineffective communication or it may cause miscommunication within a company. According to past studies, they indicate that language does not only facilitate communication. The language barrier will not affect the human resource only, it also hinders effective communication. Customers will find it hard to communicate out their need or even fail to get important information about particular or certain services or products being offered by Multinational Corporation.