Question 1

Which of the following objectives must the compensation package of international assignees meet to be effective?

Accepted Answer

The compensation package for international assignees must meet all these objectives: incentivizing the move, maintaining living standards, and considering career and family needs, to be effective.

Question 2

Approaches to determining international assignee compensation include all of the following EXCEPT

Accepted Answer

The income statement approach is not a method used for determining international assignee compensation. The common methods include negotiation, localization, and lump sum, among others. The income statement is a financial document used to track a company's income and expenses, not to set compensation levels.

Question 3

When designing financial packages for IAs, we also need to pay close attention to non-compensation factors such as_____________ to ensure overall satisfaction.

Accepted Answer

Non-compensation factors like career planning are crucial for overall satisfaction in designing financial packages for IAs, as they address long-term professional development beyond immediate financial incentives.

Question 4

The ________________________ is the norm for goods and services or the portion of salary spent on goods and services in the home country according to salary and family size of the international assignee.

Accepted Answer

The correct term is "home country spendable," which refers to the standard amount of salary that is allocated for spending on goods and services in the home country, taking into account the salary and family size of the international assignee.

Question 5

The ________________________ is the amount for goods and services that the international assignee is expected to spend in the host country as an international assignee or the amount needed for the spendables in the assignment location.

Accepted Answer

The correct term is "host country spendable," which refers to the expected amount of money an international assignee will spend on goods and services in the host country during their assignment.

Question 6

The extent of hardship in an overseas posting is evaluated using the following criteria?

Accepted Answer

The extent of hardship in an overseas posting is evaluated using all of these criteria: physical threat, level of discomfort, and inconvenience. These factors collectively help in assessing the overall hardship level of a posting.

Question 7

Cultural isolation is considered within the following categories in evaluating the extent of hardship in an overseas posting?

Accepted Answer

The answer of Cultural isolation is considered within the following...

Question 8

A(n) ____________________ agreement exists between countries that have established social security systems - they have negotiated bilateral social security treaties with each other in order to eliminate double taxation.

Accepted Answer

Totalization agreements exist between countries with established social security systems to eliminate double taxation and to help people qualify for benefits when they divide their careers between countries.

Question 9

List the five main objectives for the typical MNE global C&B program.

Accepted Answer

The answer of List the five main objectives for the...

Question 10

What is the global law of economics?

Accepted Answer

The answer of What is the global law of economics?...

Question 11

What is implied by an MNE adopting the global staffing approach?

Accepted Answer

The answer of What is implied by an MNE adopting...

Question 12

Describe three options that MNEs have for establishing a worldwide compensation system.

Accepted Answer

The answer of Describe three options that MNEs have for...

Question 13

Discuss the various approaches to IA compensation?

Accepted Answer

The answer of Discuss the various approaches to IA compensation?...

Question 14

Explain the basic objectives of global compensation and benefits

Accepted Answer

The answer of Explain the basic objectives of global compensation...

Question 15

Identify and discuss the major issues related to the effectiveness of global remuneration plans

Accepted Answer

The answer of Identify and discuss the major issues related...

Question 16

Explain the difference between global remuneration and international assignment compensation.

Accepted Answer

The answer of Explain the difference between global remuneration and...

Quiz 11: International Compensation, Benefits, and Taxes