A U.S. executive is being sent to Germany on an expatriate assignment. The executives base salary is fixed as 10,000 Euros per month. The executive's salary will suffer a pay-cut if:
A) taxation in Germany is less compared to the U.S.
B) Euro appreciates in value against U.S. dollars.
C) fixed exchange rates are used in Germany.
D) Germany has a free trade agreement with the U.S.
E) U.S. Dollar appreciates in value against Euro.
Correct Answer:
Verified
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