Question 1

A result of this approach is to "keep the PCN or TCN whole", regardless of nationality.

Accepted Answer

A)   going rate
B)   balance sheet
C)   local plus
D)   laissez-faireE) A) and B)
F) C) and D)

Question 2

The most common MNE taxation policy for international assignments, by far

Accepted Answer

A)   tax equalization
B)   tax protection
C)   ad hoc
D)   laissez-faireE) A) and B)
F) A) and C)

Question 3

As of 2014, which of these countries have the highest social security employer contribution rate?

Accepted Answer

A)   France
B)   Japan
C)   USA
D)   GermanyE) A) and C)
F) A) and D)

Question 4

The basic objective of this approach is to "keep the expatriate whole" relative to PCNs back home.

Accepted Answer

A)   going rate
B)   balance sheet
C)   local plus
D)   laissez-faireE) A) and C)
F) None of the above

Question 5

As of 2014, which of these countries has the lowest social security employer contribution rate?

Accepted Answer

A)   France
B)   USA
C)   Mexico
D)   NetherlandsE) A) and D)
F) None of the above

Question 6

Which is NOT an advantage of the Balance Sheet Approach?

Accepted Answer

A)   equity between assignments
B)   equity between expatriates from the same country
C)   facilitates expatriate re-entry
D)   can be complex to administerE) None of the above
F) B) and C) D

Question 7

In this approach, the base expatriate salary is linked to the salary structure in the host country.

Accepted Answer

A)   going rate
B)   balance sheet
C)   local plus
D)   laissez-faireE) All of the above
F) B) and C)

Question 8

Which of these locations would require more working time to purchase a Big Mac?

Accepted Answer

A)   Chicago
B)   Amsterdam
C)   Bogotá
D)   NairobiE) C) and D)
F) A) and B) D

Question 9

This compensation policy is generally targeted at middle management executives who are specialized, functional people or broad business managers who move between a variety of positions in their careers.

Accepted Answer

A)   One-way International
B)   Localization
C)   Local Plus
D)   Expat LiteE) B) and D)
F) B) and C)

Question 10

What are the four major categories of outlays incurred by expatriates in the Balance Sheet Approach?

Accepted Answer

A)   goods and services, education expenses, housing, income taxes
B)   education expenses, housing, income taxes, reserve
C)   goods and services, housing, income taxes, reserve
D)   food, education expenses, housing, income taxesE) None of the above
F) A) and B)

Question 11

This compensation policy is used for self-initiated/employee-initiated relocation

Accepted Answer

A)   One-way International
B)   Localization
C)   Local Plus
D)   Expat LiteE) A) and B)
F) A) and C)

Question 12

In this approach to taxes, the expatriate pays the taxes they would owe if they were in their home country.

Accepted Answer

A)   tax equalization
B)   tax protection
C)   ad hoc
D)   laissez-faireE) All of the above
F) B) and D)

Question 13

Which of these locations would require only 11 minutes of work to purchase a Big Mac?

Accepted Answer

A)   Chicago
B)   Amsterdam
C)   Bogotá
D)   NairobiE) A) and B)
F) A) and C)

Question 14

The most common approach to international compensation

Accepted Answer

A)   going rate
B)   balance sheet
C)   local plus
D)   laissez-faireE) B) and C)
F) B) and D)

Question 15

As of 2014, which of these countries have the highest social security employee contribution rate?

Accepted Answer

A)   France
B)   USA
C)   Germany
D)   NetherlandsE) A) and C)
F) B) and C)

Question 16

Taxation is the one area in international compensation that may cause the most concern because of

Accepted Answer

A)   its complexity
B)   the emotion it evokes
C)   its liability
D)   its actual cost to MNEsE) A) and B)
F) C) and D)

Question 17

This compensation policy is used for expatriates with deep technical skills or competencies needed in another location

Accepted Answer

A)   One-way International
B)   Localization
C)   Local Plus
D)   Expat LiteE) A) and B)
F) A) and C)

Question 18

In this approach, the expatriate is on their own to handle host and home country taxes.

Accepted Answer

A)   tax equalization
B)   tax protection
C)   ad hoc
D)   laissez-faireE) A) and D)
F) A) and C)

Question 19

Global pay issues operate at this level

Accepted Answer

A)   cultural values and assumptions
B)   pay strategies and systems design
C)   the surface level of pay administration and form
D)   all of the aboveE) A) and D)
F) A) and B)

Question 20

The leading method of calculating cost of living adjustments in foreign environments

Accepted Answer

A)   cost of food
B)   cost of doing business
C)   cost of transportation
D)   size of familyE) B) and D)
F) A) and C) D

Exam 8: International Compensation

A result of this approach is to "keep the PCN or TCN whole", regardless of nationality.

Correct AnswerverifiedShow Answer

The most common MNE taxation policy for international assignments, by far

Correct AnswerverifiedShow Answer

As of 2014, which of these countries have the highest social security employer contribution rate?

Correct AnswerverifiedShow Answer

The basic objective of this approach is to "keep the expatriate whole" relative to PCNs back home.

Correct AnswerverifiedShow Answer

As of 2014, which of these countries has the lowest social security employer contribution rate?

Correct AnswerverifiedShow Answer

Which is NOT an advantage of the Balance Sheet Approach?

Correct AnswerverifiedD

In this approach, the base expatriate salary is linked to the salary structure in the host country.

Correct AnswerverifiedShow Answer

Which of these locations would require more working time to purchase a Big Mac?

Correct AnswerverifiedD

This compensation policy is generally targeted at middle management executives who are specialized, functional people or broad business managers who move between a variety of positions in their careers.

Correct AnswerverifiedShow Answer

What are the four major categories of outlays incurred by expatriates in the Balance Sheet Approach?

Correct AnswerverifiedShow Answer

This compensation policy is used for self-initiated/employee-initiated relocation

Correct AnswerverifiedShow Answer

In this approach to taxes, the expatriate pays the taxes they would owe if they were in their home country.

Correct AnswerverifiedShow Answer

Which of these locations would require only 11 minutes of work to purchase a Big Mac?

Correct AnswerverifiedShow Answer

The most common approach to international compensation

Correct AnswerverifiedShow Answer

As of 2014, which of these countries have the highest social security employee contribution rate?

Correct AnswerverifiedShow Answer

Taxation is the one area in international compensation that may cause the most concern because of

Correct AnswerverifiedShow Answer

This compensation policy is used for expatriates with deep technical skills or competencies needed in another location

Correct AnswerverifiedShow Answer

In this approach, the expatriate is on their own to handle host and home country taxes.

Correct AnswerverifiedShow Answer

Global pay issues operate at this level

Correct AnswerverifiedShow Answer

The leading method of calculating cost of living adjustments in foreign environments

Correct AnswerverifiedD

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D