Abstract: With the industrial revolution, global leaders must more rapidly become knowledgeable of and develop essential cross-cultural competencies to be effective. Ethnocentrism represents a hidden barrier of effective leadership and must be acknowledged and addressed proactively by global leaders. The article examines the impact of ethnocentrism in four critical areas (leadership strategy, cross-cultural competencies, intercultural communication, and adaptation to international contexts) and argues that by developing cross-cultural competencies, leaders might naturally reduce ethnocentrism levels. This paper will also offer few examples to support international managers in understanding how ethnocentrism can affect performance.