Deck 8: International Compensation

Question 1

The most common approach to international compensation

A) going rate
B) balance sheet
C) local plus
D) laissez-faire

Answer 1

B

Question 2

Which of these locations would require more working time to purchase a Big Mac?

A) Chicago
B) Amsterdam
C) Bogotá
D) Nairobi

Answer 2

D

Question 3

In this approach, the base expatriate salary is linked to the salary structure in the host country.

A) going rate
B) balance sheet
C) local plus
D) laissez-faire

Answer 3

A

Question 4

In this approach, the expatriate is on their own to handle host and home country taxes.

A) tax equalization
B) tax protection
C) ad hoc
D) laissez-faire

Question 5

This compensation policy is used for self-initiated/employee-initiated relocation

A) One-way International
B) Localization
C) Local Plus
D) Expat Lite

Question 6

This compensation policy is used for expatriates with deep technical skills or competencies needed in another location

A) One-way International
B) Localization
C) Local Plus
D) Expat Lite

Question 7

This compensation policy is generally targeted at middle management executives who are specialized, functional people or broad business managers who move between a variety of positions in their careers.

A) One-way International
B) Localization
C) Local Plus
D) Expat Lite

Question 8

Which of these locations would require only 11 minutes of work to purchase a Big Mac?

A) Chicago
B) Amsterdam
C) Bogotá
D) Nairobi

Question 9

Which is NOT an advantage of the Balance Sheet Approach?

A) equity between assignments
B) equity between expatriates from the same country
C) facilitates expatriate re-entry
D) can be complex to administer

Question 10

The basic objective of this approach is to "keep the expatriate whole" relative to PCNs back home.

A) going rate
B) balance sheet
C) local plus
D) laissez-faire

Question 11

Taxation is the one area in international compensation that may cause the most concern because of

A) its complexity
B) the emotion it evokes
C) its liability
D) its actual cost to MNEs

Question 12

Global pay issues operate at this level

A) cultural values and assumptions
B) pay strategies and systems design
C) the surface level of pay administration and form
D) all of the above

Question 13

As of 2014, which of these countries have the highest social security employee contribution rate?

A) France
B) USA
C) Germany
D) Netherlands

Question 14

In this approach to taxes, the expatriate pays the taxes they would owe if they were in their home country.

A) tax equalization
B) tax protection
C) ad hoc
D) laissez-faire

Question 15

As of 2014, which of these countries has the lowest social security employer contribution rate?

A) France
B) USA
C) Mexico
D) Netherlands

Question 16

The most common MNE taxation policy for international assignments, by far

A) tax equalization
B) tax protection
C) ad hoc
D) laissez-faire

Question 17

What are the four major categories of outlays incurred by expatriates in the Balance Sheet Approach?

A) goods and services, education expenses, housing, income taxes
B) education expenses, housing, income taxes, reserve
C) goods and services, housing, income taxes, reserve
D) food, education expenses, housing, income taxes

Question 18

As of 2014, which of these countries have the highest social security employer contribution rate?

A) France
B) Japan
C) USA
D) Germany

Question 19

A result of this approach is to "keep the PCN or TCN whole", regardless of nationality.

A) going rate
B) balance sheet
C) local plus
D) laissez-faire

Question 20

The leading method of calculating cost of living adjustments in foreign environments

A) cost of food
B) cost of doing business
C) cost of transportation
D) size of family