Question 1

The purpose of home leave allowances is to:

Accepted Answer

A)  Compensate for differences in expenditures between the home country and the foreign country 
B)  Give expatriates the opportunity to renew family and business ties,thereby helping them to avoid adjustment problems when they are repatriated 
C)  Cover moving,shipping and storage charges,and temporary living expenses 
D)  Give employees a chance to leave their homes to tour their potential foreign assignment 
A)  Compensate for differences in expenditures between the home country and the foreign country 
B)  Give expatriates the opportunity to renew family and business ties,thereby helping them to avoid adjustment problems when they are repatriated 
C)  Cover moving,shipping and storage charges,and temporary living expenses 
D)  Give employees a chance to leave their homes to tour their potential foreign assignment

Question 2

The most common taxation policy used by multinationals is:

Accepted Answer

A)  Tax protection 
B)  Parent country national taxation 
C)  Tax equalization 
D)  No taxation 
A)  Tax protection 
B)  Parent country national taxation 
C)  Tax equalization 
D)  No taxation

Question 3

In a domestic context,base salary:

Accepted Answer

A)  Is the primary component of a package of allowances 
B)  Includes cost-of-living allowance 
C)  Denotes the amount of cash compensation serving as a benchmark for other compensation elements 
D)  Is determined by using the Going Rate Approach 
A)  Is the primary component of a package of allowances 
B)  Includes cost-of-living allowance 
C)  Denotes the amount of cash compensation serving as a benchmark for other compensation elements 
D)  Is determined by using the Going Rate Approach

Question 4

Base salary must be paid in local country currency.

Accepted Answer

A) True 
 B)False

Question 5

Global pay practices consist of firm level decisions about:

Accepted Answer

A)  Pay mix,pay level and standardization versus localization 
B)  Pay levels,pay mix and hierarchy versus egalitarian basis 
C)  Pay levels,cultural norms and pay bases 
D)  Pay mix,pay culture and standardization versus localization 
A)  Pay mix,pay level and standardization versus localization 
B)  Pay levels,pay mix and hierarchy versus egalitarian basis 
C)  Pay levels,cultural norms and pay bases 
D)  Pay mix,pay culture and standardization versus localization

Question 6

The competing objectives of the international firm and the expatriate employee are fundamentally different from that which exists in a domestic environment.

Accepted Answer

A) True 
 B)False

Question 7

"Globals" are:

Accepted Answer

A)  Expatriates 
B)  Permanent international assignees 
C)  Commuters 
D)  International travelers 
A)  Expatriates 
B)  Permanent international assignees 
C)  Commuters 
D)  International travelers

Question 8

Firms need to address many issues when considering benefits,including:

Accepted Answer

A)  Whether or not to maintain expatriates in home-country programs 
B)  Whether or not to use the Going Rate Approach 
C)  Whether or not to use the Balance Sheet Approach 
D)  Whether or not expatriates should receive any social security benefits 
A)  Whether or not to maintain expatriates in home-country programs 
B)  Whether or not to use the Going Rate Approach 
C)  Whether or not to use the Balance Sheet Approach 
D)  Whether or not expatriates should receive any social security benefits

Question 9

International compensation is:

Accepted Answer

A)  On a practical level,simpler than a domestic pay system 
B)  Not considered critical for most multinational enterprises 
C)  Still essentially equivalent to the topic of expatriate pay practices in all multinational enterprises 
D)  More complex than domestic pay due to outsourcing and balancing centralizations and decentralization of pay forms 
A)  On a practical level,simpler than a domestic pay system 
B)  Not considered critical for most multinational enterprises 
C)  Still essentially equivalent to the topic of expatriate pay practices in all multinational enterprises 
D)  More complex than domestic pay due to outsourcing and balancing centralizations and decentralization of pay forms

Question 10

Many multinationals respond to complexity of tax issues across countries by:

Accepted Answer

A)  Ignoring all tax issues except for the Parent company 
B)  Retaining the services of international accounting firms 
C)  Having an in-house tax division to prepare all tax related forms and addresses all country tax issues 
D)  Leaving all tax issues up to the employee 
A)  Ignoring all tax issues except for the Parent company 
B)  Retaining the services of international accounting firms 
C)  Having an in-house tax division to prepare all tax related forms and addresses all country tax issues 
D)  Leaving all tax issues up to the employee

Question 11

National and regional differences in the meaning practice and tradition of pay:

Accepted Answer

A)  Are rapidly diminishing 
B)  Have practically disappeared with global cultural integration 
C)  Remain significant sources of variation in the international firm 
D)  Are actually increasing due to national and regional protectionist legislative mandates 
A)  Are rapidly diminishing 
B)  Have practically disappeared with global cultural integration 
C)  Remain significant sources of variation in the international firm 
D)  Are actually increasing due to national and regional protectionist legislative mandates

Question 12

List the objectives of international compensation for an employee.

Accepted Answer

·Provide financial protection in terms o

Question 13

MNEs generally pay allowances in order to:

Accepted Answer

A)  Change the living standards of employees 
B)  Encourage employees to take international assignments 
C)  Avoid certain taxes 
D)  Discourage employees from taking international assignments 
A)  Change the living standards of employees 
B)  Encourage employees to take international assignments 
C)  Avoid certain taxes 
D)  Discourage employees from taking international assignments

Question 14

MNEs using the Balance Sheet approach to international compensation are constantly updating compensation packages for cost of living changes.

Accepted Answer

A) True 
 B)False

Question 15

A firm-external theory of job worth is influenced by:

Accepted Answer

A)  Behavioral theory 
B)  Level of internationalization 
C)  Cultural and institutional perspectives 
D)  Local market conditions 
A)  Behavioral theory 
B)  Level of internationalization 
C)  Cultural and institutional perspectives 
D)  Local market conditions

Question 16

With the Going Rate Approach,if the location is in a low-pay country,the multinational usually supplements base pay with additional benefits and payments.

Accepted Answer

A) True 
 B)False

Question 17

"Universal" pay systems may be preferred by corporate pay planners rather than having to deal with myriad "Local" systems.

Accepted Answer

A) True 
 B)False

Question 18

Paying TCNs according to their home-country base salary can be less expensive than paying all expatriates on a PCN scale.

Accepted Answer

A) True 
 B)False

Question 19

The four categories of outlay incurred by expatriates that are incorporated in the Balance Sheet Approach are:

Accepted Answer

A)  Goods and services,housing,income tax and reserve 
B)  Housing,base pay,goods and services and taxation 
C)  Taxation,housing,exchange rate and goods and services 
D)  Reserve,housing,taxation and evaluation cost 
A)  Goods and services,housing,income tax and reserve 
B)  Housing,base pay,goods and services and taxation 
C)  Taxation,housing,exchange rate and goods and services 
D)  Reserve,housing,taxation and evaluation cost

Question 20

Increased complexities in global pay include the decreased use of outsourced activities and subsequent labor pricing needs.

Accepted Answer

A) True 
 B)False

The purpose of home leave allowances is to:

The most common taxation policy used by multinationals is:

In a domestic context,base salary:

Base salary must be paid in local country currency.

Global pay practices consist of firm level decisions about:

The competing objectives of the international firm and the expatriate employee are fundamentally different from that which exists in a domestic environment.

"Globals" are:

Firms need to address many issues when considering benefits,including:

International compensation is:

Many multinationals respond to complexity of tax issues across countries by:

National and regional differences in the meaning practice and tradition of pay:

List the objectives of international compensation for an employee.

MNEs generally pay allowances in order to:

MNEs using the Balance Sheet approach to international compensation are constantly updating compensation packages for cost of living changes.

A firm-external theory of job worth is influenced by:

With the Going Rate Approach,if the location is in a low-pay country,the multinational usually supplements base pay with additional benefits and payments.

"Universal" pay systems may be preferred by corporate pay planners rather than having to deal with myriad "Local" systems.

Paying TCNs according to their home-country base salary can be less expensive than paying all expatriates on a PCN scale.

The four categories of outlay incurred by expatriates that are incorporated in the Balance Sheet Approach are:

Increased complexities in global pay include the decreased use of outsourced activities and subsequent labor pricing needs.

Introduction

The Cultural Context of IHRM

The Organizational Context

IHRM in Cross-Border Mergers & Acquisitions, International Alliances and SMEs

Sourcing Human Resources for Global Markets – Staffing, Recruitment and Selection

International Performance Management

International Training,Development and Careers

International Industrial Relations and The Global Institutional Context

IHRM Trends and Future Challenges

Filters

Exam 8: International Compensation

The purpose of home leave allowances is to:

The most common taxation policy used by multinationals is:

In a domestic context,base salary:

Base salary must be paid in local country currency.

Global pay practices consist of firm level decisions about:

The competing objectives of the international firm and the expatriate employee are fundamentally different from that which exists in a domestic environment.

"Globals" are:

Firms need to address many issues when considering benefits,including:

International compensation is:

Many multinationals respond to complexity of tax issues across countries by:

National and regional differences in the meaning practice and tradition of pay:

List the objectives of international compensation for an employee.

MNEs generally pay allowances in order to:

MNEs using the Balance Sheet approach to international compensation are constantly updating compensation packages for cost of living changes.

A firm-external theory of job worth is influenced by:

With the Going Rate Approach,if the location is in a low-pay country,the multinational usually supplements base pay with additional benefits and payments.

"Universal" pay systems may be preferred by corporate pay planners rather than having to deal with myriad "Local" systems.

Paying TCNs according to their home-country base salary can be less expensive than paying all expatriates on a PCN scale.

The four categories of outlay incurred by expatriates that are incorporated in the Balance Sheet Approach are:

Increased complexities in global pay include the decreased use of outsourced activities and subsequent labor pricing needs.

Introduction

The Cultural Context of IHRM

The Organizational Context

IHRM in Cross-Border Mergers & Acquisitions, International Alliances and SMEs

Sourcing Human Resources for Global Markets – Staffing, Recruitment and Selection

International Performance Management

International Training,Development and Careers

International Industrial Relations and The Global Institutional Context

IHRM Trends and Future Challenges

Filters