Question 1

The "Local Plus" approach to international compensation

Accepted Answer

A)  Pays expatriates solely based on prevailing local wage conditions 
B)  Provides nothing but benefits in transportation assistance,housing and dependent's education 
C)  Combines some local pay practices with some expatriate benefits 
D)  Always includes tax equalization policies 
A)  Pays expatriates solely based on prevailing local wage conditions 
B)  Provides nothing but benefits in transportation assistance,housing and dependent's education 
C)  Combines some local pay practices with some expatriate benefits 
D)  Always includes tax equalization policies

Question 2

The Top Five highest taxation countries are:

Accepted Answer

A)  Netherlands,Belgium,Germany,Australia and Italy 
B)  USA,Netherlands,France,Germany and China 
C)  China,Australia,Belgium,France and Malaysia 
D)  Taiwan,France,Netherland,Belgium and Australia 
A)  Netherlands,Belgium,Germany,Australia and Italy 
B)  USA,Netherlands,France,Germany and China 
C)  China,Australia,Belgium,France and Malaysia 
D)  Taiwan,France,Netherland,Belgium and Australia

Question 3

The provision of a relocation allowance implies that employees should be entitled to maintain their home country living standards.

Accepted Answer

A) True 
 B)False

Question 4

Obtaining up to date information on international living costs is a constant issue for multinationals.

Accepted Answer

A) True 
 B)False

Question 5

The Balance Sheet Approach:

Accepted Answer

A)  Is the most widely used approach to international compensation 
B)  Relies on survey comparisons 
C)  Creates potential re-entry problems 
D)  Creates variation between expatriates of the same nationality in different countries 
A)  Is the most widely used approach to international compensation 
B)  Relies on survey comparisons 
C)  Creates potential re-entry problems 
D)  Creates variation between expatriates of the same nationality in different countries

Question 6

Describe the advantages and disadvantages of the Going Rate Approach to international compensation and the Balance Sheet Approach.

Accepted Answer

·Going Rate: ADV - Equitable vis a vis l

Question 7

Performance verses seniority is a strategic choice of pay strategy considered in:

Accepted Answer

A)  Job evaluation system 
B)  Units of aggregation 
C)  Internal equity 
D)  Basis of pay 
A)  Job evaluation system 
B)  Units of aggregation 
C)  Internal equity 
D)  Basis of pay

Question 8

Relocation allowances:

Accepted Answer

A)  Do not usually cover temporary living expenses 
B)  Usually cover temporary living expenses 
C)  Cover discretionary items 
D)  Do not usually cover moving 
A)  Do not usually cover temporary living expenses 
B)  Usually cover temporary living expenses 
C)  Cover discretionary items 
D)  Do not usually cover moving

Question 9

The provision of a cost-of-living allowance implies that the cost-of-living in the foreign assignment is higher than at home.

Accepted Answer

A) True 
 B)False

Question 10

The provision of a housing allowance:

Accepted Answer

A)  Is not often assessed on a case-by-case basis 
B)  Does not ever include a fixed housing allowance 
C)  Implies higher living standards 
D)  May include company-provided housing 
A)  Is not often assessed on a case-by-case basis 
B)  Does not ever include a fixed housing allowance 
C)  Implies higher living standards 
D)  May include company-provided housing

Question 11

What are the three vertical levels of global pay strategies?

Accepted Answer

Level three: Artifac

Question 12

A disadvantage of the Balance Sheet Approach is that:

Accepted Answer

A)  There can be variations between assignments for the same employee 
B)  There can be variations between expatriates of the same nationality in different countries 
C)  There may be potential re-entry problems 
D)  It can result in great disparities between expatriates of different nationalities and between expatriates and local nationals 
A)  There can be variations between assignments for the same employee 
B)  There can be variations between expatriates of the same nationality in different countries 
C)  There may be potential re-entry problems 
D)  It can result in great disparities between expatriates of different nationalities and between expatriates and local nationals

Question 13

International compensation is characterized by:

Accepted Answer

A)  Complexity,culture and corporation 
B)  Complexity,cultural challenges 
C)  Complexity,challenges and choices 
D)  Complexity,cooperation and competition 
A)  Complexity,culture and corporation 
B)  Complexity,cultural challenges 
C)  Complexity,challenges and choices 
D)  Complexity,cooperation and competition

Question 14

Successfully managing compensation and benefits in a multinational context:

Accepted Answer

A)  Requires knowledge of employment and taxation law,customs,environment,and employment practices of many foreign countries 
B)  Requires the use of both the going rate approach and the balance sheet approach to international compensation 
C)  Does not require familiarity with currency fluctuations 
D)  Does not require the use of any kind of base salary 
A)  Requires knowledge of employment and taxation law,customs,environment,and employment practices of many foreign countries 
B)  Requires the use of both the going rate approach and the balance sheet approach to international compensation 
C)  Does not require familiarity with currency fluctuations 
D)  Does not require the use of any kind of base salary

Question 15

Discuss the key components of an international compensation program.

Accepted Answer

·Base salary
·Foreign service inducement

Question 16

An external,environmental norm in global pay strategy would be:

Accepted Answer

A)  Traditional employment relationships 
B)  Labor unions and educational systems 
C)  Resource-based view of the firm 
D)  Institutional economics 
A)  Traditional employment relationships 
B)  Labor unions and educational systems 
C)  Resource-based view of the firm 
D)  Institutional economics

Question 17

Benefits that may be provided to employees include:

Accepted Answer

A)  Base pay 
B)  Tax protection 
C)  Vacations and special leave 
D)  Cost-of-living allowances 
A)  Base pay 
B)  Tax protection 
C)  Vacations and special leave 
D)  Cost-of-living allowances

The "Local Plus" approach to international compensation

The Top Five highest taxation countries are:

The provision of a relocation allowance implies that employees should be entitled to maintain their home country living standards.

Obtaining up to date information on international living costs is a constant issue for multinationals.

The Balance Sheet Approach:

Describe the advantages and disadvantages of the Going Rate Approach to international compensation and the Balance Sheet Approach.

Performance verses seniority is a strategic choice of pay strategy considered in:

Relocation allowances:

The provision of a cost-of-living allowance implies that the cost-of-living in the foreign assignment is higher than at home.

The provision of a housing allowance:

What are the three vertical levels of global pay strategies?

A disadvantage of the Balance Sheet Approach is that:

International compensation is characterized by:

Successfully managing compensation and benefits in a multinational context:

Discuss the key components of an international compensation program.

An external,environmental norm in global pay strategy would be:

Benefits that may be provided to employees include:

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 "Local Plus" approach to international compensation

The Top Five highest taxation countries are:

The provision of a relocation allowance implies that employees should be entitled to maintain their home country living standards.

Obtaining up to date information on international living costs is a constant issue for multinationals.

The Balance Sheet Approach:

Describe the advantages and disadvantages of the Going Rate Approach to international compensation and the Balance Sheet Approach.

Performance verses seniority is a strategic choice of pay strategy considered in:

Relocation allowances:

The provision of a cost-of-living allowance implies that the cost-of-living in the foreign assignment is higher than at home.

The provision of a housing allowance:

What are the three vertical levels of global pay strategies?

A disadvantage of the Balance Sheet Approach is that:

International compensation is characterized by:

Successfully managing compensation and benefits in a multinational context:

Discuss the key components of an international compensation program.

An external,environmental norm in global pay strategy would be:

Benefits that may be provided to employees include:

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