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

A)  the balance sheet approach
B)  the cost comparison approach
C)  the weights and measurements approach
D)  the retrospective approach A

Question 2

About how many countries are deemed as hardship locations by the U.S.State Department?

Accepted Answer

A)  300
B)  150
C)  750
D)  25 B

Question 3

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

Accepted Answer

Inflation

Question 4

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

Accepted Answer

A)  cost-of-living allowance
B)  inflation provision
C)  housing and utilities allowance
D)  assimilation allowance

Question 5

________ nationals are foreign national citizens who work in U.S.companies' branch offices or manufacturing plants in countries other than the United States or their own home countries.

Accepted Answer

The answer of ________ nationals are foreign national citizens who...

Question 6

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

A)  Josh pays the taxes.
B)  the employer reimburses Josh.
C)  under tax equalization, neither Josh nor his employer receives a reimbursement.
D)  the foreign government reimburses Josh.

Question 7

Successful business endeavors rely on whom?

Accepted Answer

A)  host country nationals
B)  the right people
C)  third country nationals
D)  expatriates

Question 8

On which group of employees do U.S.companies rely as a pay referent when developing international compensation packages?

Accepted Answer

A)  domestic
B)  host country national
C)  third country national
D)  employees who work in Washington, D.C.

Question 9

Which of the following would be considered a hardship location (due to dangerous conditions)?

Accepted Answer

A)  Baghdad, Iraq
B)  Basel, Switzerland
C)  Oslo, Norway
D)  Brisbane, Australia

Question 10

If your French-owned company,headquartered in Paris,hired a Canadian manager to work in your plant in Taiwan,she would be considered which type of international employee?

Accepted Answer

A)  foreign country national
B)  third country national
C)  host country national
D)  non-host country national

Question 11

An international assignment is considered long-term when it lasts at least how long?

Accepted Answer

A)  3 months
B)  6 months
C)  2 years
D)  1 year

Question 12

Benjamin is going on his first expatriate assignment to a country considered a hardship location.About how much will he have his base pay increased?

Accepted Answer

A)  50% - 70%
B)  5% - 35%
C)  20% - 40%
D)  40% - 50%

Question 13

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

Accepted Answer

A)  upon return to his home country
B)  over the length of his assignment
C)  in 3 installments
D)  a lump-sum payment

Question 14

Which of the following questions should HR professionals consider when selecting employees for expatriate assignments?

Accepted Answer

A)  Are candidates willing to sacrifice job promotions in their home countries?
B)  Are candidates able to fluently speak the language in multiple countries?
C)  Are candidates' families willing to adjust to foreign lifestyles?
D)  Are candidates willing to sacrifice some of their compensation?

Question 15

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

Accepted Answer

A)  length of stay, family size
B)  location, family size
C)  cost of living, family size
D)  length of stay, location

Question 16

Since U.S.citizen David became an employee of American Eyeful Pictures,Inc.,headquartered in Los Angeles,he has worked in Japan,China,and Thailand.The company has probably based his base pay using which method?

Accepted Answer

A)  host country
B)  home country
C)  headquarters
D)  third countr

Question 17

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

Accepted Answer

A)  The indexes are between-location cost comparisons at future times and currency exchange rates.
B)  The indexes are place-to-place cost comparisons at future times and currency exchange rates.
C)  The indexes are between-location cost comparisons at specific times and currency exchange rates.
D)  The indexes are place-to-place cost comparisons at specific times and currency exchange rates.

Question 18

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

Accepted Answer

A)  emergency leave
B)  education reimbursement for expatriates' children
C)  host country holiday pay
D)  pay for host country vacation days

Question 19

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

Accepted Answer

A)  U.S. Department of State's quarters allowances
B)  Consumer Price Index
C)  Indexes of international labor costs
D)  U.S. Department of State's International Consumer Price Index

Question 20

What are some of the issues companies should consider to increase the likelihood of successful repatriation?

Accepted Answer

The answer of What are some of the issues companies...

Exam 13: Compensation Expatriates