Deck 14: Compensation Expatriates

Question 1

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

Answer 1

A

Question 2

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

Answer 2

B

Question 3

Juanita was told that on her first overseas assignment she would be getting a foreign service premium.That probably means she will be there at least how long?

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

Answer 3

A

Question 4

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 5

Stephan is going to be getting a mobility premium for going to Saudi Arabia.How are you going to give it to him?

A)when he completes the assignment
B)over the length of his assignment
C)in 3 installments
D)a lump-sum payment

Question 6

Since he started at American Eyeful Pictures,Inc.,David has worked in Japan,China,and Thailand.The company has probably set his base pay using which method?

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

Question 7

What does the term repatriation refer to?

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 8

Your company is sending Sheila on a six-month assignment to Sweden.Which method should you use to determine her base pay?

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

Question 9

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 10

Which of the following titles are international employees categorized?

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 11

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

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

Question 12

AT&T plans on sending R.J.to Peru to work for at least 3 years.They will probably use which method to set his base pay?

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

Question 13

If your company 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 14

Which base-pay method works best for expatriates that move from one foreign assignment to another and rarely,if ever,work in their home countries?

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

Question 15

Andre is going to be stationed overseas for about 18 months,so his 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 16

What law mandates that management bargain in good faith with labor unions over terms of employment,such as wages?

A)Fair Labor Standards Act of 1938
B)National Labor Relations Act of 1935
C)North American Free Trade Agreement
D)North American Treaty Organization

Question 17

Renata Marie has been given a mobility premium as a reward for moving from one assignment to another.In what form did she receive this premium?

A)lump-sum payment
B)monthly payments
C)a year-end bonus
D)annuity payments

Question 18

How are hardship allowances usually paid to expatriates?

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

Question 19

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

A)her distance
B)her length of assignment
C)her rank in the company
D)all of the above

Question 20

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

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

Question 21

The State Department's Index compares the foreign costs of goods and services with which U.S.city?

A)Seattle
B)Chicago
C)Washington,D.C.
D)New York

Question 22

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

Question 23

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 24

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

Question 25

________ 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 26

If the local index for Tel Aviv,Israel is 146,what does that mean?

A)The cost of living is 46% higher in Washington,D.C.than it is in Tel Aviv.
B)The cost of living is 146% higher in Washington,D.C.than it is in Tel Aviv.
C)The cost of living is 146% higher in Tel Aviv than Washington,D.C.
D)The cost of living is 46% higher in Tel Aviv than Washington,D.C.

Question 27

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

Question 28

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 29

When is a goods and services allowance given?

A)to any person willing to work outside of the U.S.
B)when there is a high level of stagflation
C)when the cost of living is lower in the foreign work location than in the U.S.
D)when the cost of living is higher in the foreign work location than in the U.S.

Question 30

________ 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 31

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

Question 32

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

Question 33

What happens 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 34

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 reimburses his employer.
B)his employer reimburses Josh.
C)under tax equalization,neither Josh nor his employer reimburses.
D)foreign government reimburses Josh.

Question 35

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

Question 36

Which of the following are used by the State Department to determine the 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 37

Expatriates receive ________ allowances when the cost of living is higher in the country that they work in than it is in the U.S.

Question 38

Which approach provides expatriates the standard of living that they normally enjoy in the United States?

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

Question 39

If the local index in Tegucigalpa,Honduras is 99,what does that mean?

A)The cost of living in Tegucigalpa is 1% lower than in Washington,D.C.
B)The cost of living in Tegucigalpa is 99% lower than in Washington,D.C.
C)The cost of living in Tegucigalpa is 1% higher than in Washington,D.C.
D)The cost of living in Tegucigalpa is 99% higher than in Washington,D.C.

Question 40

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

Question 41

Explain headquarters-based method to calculate expatriates based pay.Which incentive might work better for this method?

Question 42

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

Question 43

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