Question 1

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?

Accepted Answer

The balance sheet approach is designed to maintain the expatriate's standard of living by equalizing the after-tax income of the expatriate in both the home and host countries. The approach involves determining the difference in the cost of living between the two countries and adjusting the expatriate's compensation package accordingly. This approach is considered the most comprehensive and fair in terms of avoiding double income taxation and maintaining residences in both countries. The cost comparison approach and the weights and measurements approach are less comprehensive and may not provide a fair solution for the expatriate. The retrospective approach is not a relevant approach in this situation.

Question 2

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

Accepted Answer

In determining Ms. Jenkins' relocation assistance amount, her length of assignment must be considered because it will impact the amount of expenses incurred during relocation. For example, a longer assignment may require more assistance for housing, transportation, and other costs. The other options (seniority, education level, and foreign language proficiency) are not relevant factors in determining relocation assistance.

Question 3

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?

Accepted Answer

According to the State Department's Foreign Affairs Manual, a Foreign Service premium is paid to employees who are serving at a post where conditions of environment differ substantially from those in the United States. This premium can range from 10% to 30% of an employee's base salary, depending on the location and level of hardship. Therefore, Andre's foreign service premium will increase his base pay by approximately 10-30%.

Question 4

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

Accepted Answer

The answer of ________ is the increase in prices for...

Question 5

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?

Accepted Answer

Foreign service premiums are typically provided for assignments of at least 12 months to compensate for the challenges of living and working overseas.

Question 6

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

Accepted Answer

Service practices are programs that provide employees with non-monetary benefits, such as tuition reimbursement and day care assistance.

Question 7

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

Accepted Answer

The indexes of living costs abroad enable expatriates to make place-to-place cost comparisons at specific times and currency exchange rates.

Question 8

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

Accepted Answer

Employers typically rely on the U.S. Department of State's quarters allowances to determine the housing and utilities support that they offer to employees who are relocating overseas.

Question 9

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

Accepted Answer

The answer of What are three challenges employers face when...

Question 10

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

Accepted Answer

The answer of The ________ allowance compensates expatriates for their...

Question 11

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

Accepted Answer

The answer of ________ benefits allow for expatriates to take...

Question 12

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

Accepted Answer

The answer of ________ premiums reward employees for moving from...

Question 13

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

Accepted Answer

Quarters allowance refers to the provision for housing and utilities for expatriates, covering expenses related to accommodation and basic services while living abroad.

Question 14

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

Accepted Answer

A mobility premium is typically a one-time payment provided to employees as compensation for accepting an international relocation assignment. The most common form of mobility premium is a lump-sum payment, which is paid upfront or shortly after the employee's arrival in the host country. Therefore, option D is the best choice.

Question 15

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

Accepted Answer

The answer of Which of the following are used by...

Question 16

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

Accepted Answer

The answer of An ________ is the price at which...

Question 17

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

Accepted Answer

Rest and relaxation leave benefits are often provided to employees working in hardship locations as additional paid time off to help them cope with the stress and challenges of their work environment. Options B and C refer to other types of premiums and compensation, and option D does not exist as a recognized form of employee benefit.

Question 18

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

Accepted Answer

Education reimbursement for expatriates' children is considered an enhanced benefit as it helps to alleviate the financial burden of the parents' choice to raise their children overseas. This benefit is often included in expatriate packages to attract and retain top talent. Emergency leave, host country holiday pay, and pay for host country vacation days are standard benefits for expatriates and are not considered enhanced benefits.

Question 19

Which of the following occurs under tax equalization?

Accepted Answer

The answer of Which of the following occurs under tax...

Question 20

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,

Accepted Answer

The answer of Josh works at a U.S.construction company as...

Quiz 13: Compensation Expatriates