Deck 13: Compensation Expatriates

Question 1

U.S.citizen John is an employee of GE,which is headquartered in the United States.His job responsibilities require him to work in Belgium for at least three years.Which method of pay is most appropriate?

A)expatriate-based
B)host-country-based
C)home-country-based
D)headquarters-based

Answer 1

C

Question 2

Which of the following factors has contributed to the expansion of global markets?

A)stricter labor laws outside the United States
B)onshoring outside the United States
C)multicultural diversity within the United States
D)unification of the European markets

Answer 2

D

Question 3

Benjamin is going on his first expatriate assignment to a country considered a hardship location.About how much will he have his base pay increased?

A)50% - 70%
B)5% - 35%
C)20% - 40%
D)40% - 50%

Answer 3

B

Question 4

In the Italian language,"la" refers to the word "the" for feminine nouns,and "il" refers to the word "the" for masculine nouns.Mastering this knowledge is an example of which of the following?

A)language proficiency
B)historical sensitivity
C)cultural sensitivity
D)gender respect

Question 5

If your French-owned company,headquartered in Paris,hired a Canadian manager to work in your plant in Taiwan,she would be considered which type of international employee?

A)foreign country national
B)third country national
C)host country national
D)non-host country national

Question 6

Which of the following describe categories of international employees?

A)expatriates, third country national, headquarter national
B)host country national, third country national, expatriates
C)repatriates, host country national, third country nationals
D)headquarter national, expatriates, home country nationals

Question 7

On which group of employees do U.S.companies rely as a pay referent when developing international compensation packages?

A)domestic
B)host country national
C)third country national
D)employees who work in Washington, D.C.

Question 8

Successful business endeavors rely on whom?

A)host country nationals
B)the right people
C)third country nationals
D)expatriates

Question 9

About how many countries are deemed as hardship locations by the U.S.State Department?

A)300
B)150
C)750
D)25

Question 10

Which of the following questions should HR professionals consider when selecting employees for expatriate assignments?

A)Are candidates willing to sacrifice job promotions in their home countries?
B)Are candidates able to fluently speak the language in multiple countries?
C)Are candidates' families willing to adjust to foreign lifestyles?
D)Are candidates willing to sacrifice some of their compensation?

Question 11

________ nationals are foreign citizens that work in U.S.companies' branch offices or manufacturing plants in their home countries.

Question 12

Without which type of skills is an expatriate's credibility likely to be undermined?

A)accounting
B)mathematical
C)language
D)marketing

Question 13

Which of the following would be considered a hardship location (due to dangerous conditions)?

A)Baghdad, Iraq
B)Basel, Switzerland
C)Oslo, Norway
D)Brisbane, Australia

Question 14

How does globalization affect HR departments?

Question 15

Since U.S.citizen David became an employee of American Eyeful Pictures,Inc.,headquartered in Los Angeles,he has worked in Japan,China,and Thailand.The company has probably based his base pay using which method?

A)host country
B)home country
C)headquarters
D)third countr

Question 16

U.S.citizens employed in U.S.companies with work assignments outside the United States are better known as ________.

Question 17

About how often do companies pay hardship allowances to expatriates?

A)paid over a two year period
B)added to monthly salary amount
C)added in several small payments
D)paid in a single lump sum

Question 18

Repatriation refers to which of the following?

A)sending an expatriate's family to the foreign country with him
B)an expatriate going back to an overseas assignment she had been to before
C)an expatriate returning home to work after completing an overseas assignment
D)teaching an expatriate about the customs and culture of a foreign country

Question 19

An international assignment is considered long-term when it lasts at least how long?

A)3 months
B)6 months
C)2 years
D)1 year

Question 20

________ nationals are foreign national citizens who work in U.S.companies' branch offices or manufacturing plants in countries other than the United States or their own home countries.

Question 21

Mary is a U.S.expatriate who is assigned to work in Belgium.In order to avoid double income taxation and maintaining residences in the United States and in Belgium,which approach will not place her at a financial disadvantage?

A)the balance sheet approach
B)the cost comparison approach
C)the weights and measurements approach
D)the retrospective approach

Question 22

When determining Ms.Jenkins' relocation assistance amount,what will you need to consider?

A)her seniority
B)her level of education
C)her ability to speak a relevant foreign language
D)her length of assignment

Question 23

Andre is going to be stationed overseas for about 18 months.Andre's foreign service premium will increase his base pay by about how much?

A)5 - 10 %
B)10 - 30 %
C)40 - 60 %
D)50 - 75 %

Question 24

________ is the increase in prices for consumer goods and services.

Question 25

Prior to Juanita's first overseas assignment,she was told that she would receive a foreign service premium.Juanita will be on assignment for at least how long?

A)12 months
B)6 months
C)3 months
D)24 months

Question 26

Tuition reimbursement and day care assistance fall under which of the following categories?

A)boosted enhancements
B)protection programs
C)paid time off
D)service practices

Question 27

What do the indexes of living costs abroad enable expatriates to do?

A)The indexes are between-location cost comparisons at future times and currency exchange rates.
B)The indexes are place-to-place cost comparisons at future times and currency exchange rates.
C)The indexes are between-location cost comparisons at specific times and currency exchange rates.
D)The indexes are place-to-place cost comparisons at specific times and currency exchange rates.

Question 28

Employers usually rely on which source to determine housing and utilities support?

A)U)S. Department of State's quarters allowances
B)Consumer Price Index
C)Indexes of international labor costs
D)U)S. Department of State's International Consumer Price Index

Question 29

What are three challenges employers face when using foreign service premiums?

Question 30

The ________ allowance compensates expatriates for their sacrifices while on assignment.

Question 31

________ benefits allow for expatriates to take paid time off back in the United States.

Question 32

________ premiums reward employees for moving from one assignment to another.

Question 33

Quarters allowance is the U.S.Department of State's nomenclature for which expatriate cost provision?

A)cost-of-living allowance
B)inflation provision
C)housing and utilities allowance
D)assimilation allowance

Question 34

Stephan will receive a mobility premium for undertaking an assignment in Saudi Arabia.How will he receive it?

A)upon return to his home country
B)over the length of his assignment
C)in 3 installments
D)a lump-sum payment

Question 35

Which of the following are used by the State Department to determine per diem schedules?

A)length of stay, family size
B)location, family size
C)cost of living, family size
D)length of stay, location

Question 36

An ________ is the price at which one country's currency can be swapped for another.

Question 37

Which of the following represent additional paid time off for employees working in hardship locations?

A)rest and relaxation leave benefits
B)permissible premiums
C)foreign service premiums
D)chillaxtion time

Question 38

Which of the following is considered an enhanced benefit for expatriates?

A)emergency leave
B)education reimbursement for expatriates' children
C)host country holiday pay
D)pay for host country vacation days

Question 39

Which of the following occurs under tax equalization?

A)Expatriates realize tax benefits whenever actual taxes are less than the hypothetical tax.
B)The employee pays the foreign income tax, but not the U.S. government tax.
C)Employers reimburse expatriates for the difference between the hypothetical tax and the actual income tax.
D)The employer takes the responsibility for paying the income tax on behalf of the expatriates.

Question 40

Josh works at a U.S.construction company as a civil engineer.He has been working overseas for the last three years.The hypothetical tax calculated by his company turned out to be less than his actual income tax.In this situation,

A)Josh pays the taxes.
B)the employer reimburses Josh.
C)under tax equalization, neither Josh nor his employer receives a reimbursement.
D)the foreign government reimburses Josh.

Question 41

________ is the transition process of working in a domestic assignment in a worker's home country after having worked on an international assignment abroad.

Question 42

Expatriates receive ________ allowances when the cost of living is higher where they work than in the home country.

Question 43

What is the balance sheet approach? When is its use most appropriate?

Question 44

What are some of the issues companies should consider to increase the likelihood of successful repatriation?