Question 1

Which of the following best describes a "dual pay" approach in expatriate compensation?

Options :

A : Paying in the host-country currency only

B :

Splitting compensation between home and host-country currencies to address local expenses and maintain savings in home currency

C : Standardizing pay across all expatriates

D : Avoiding local currency use for expatriates

Answer: B

Question 2

In a "global recognition program," which of the following should be a key consideration?

Options :

A : Standardizing all recognition awards regardless of region

B :

Aligning recognition practices with both local cultural norms and global organizational objectives to maximize effectiveness

C : Focusing only on monetary rewards to simplify the program

D : Limiting recognition programs to headquarters only

Answer: B

Question 3

In the context of "cross-border mergers and acquisitions," why is addressing compensation alignment critical?

Options :

A : It ensures only home-country standards are applied

B :

It enables equitable treatment of employees, reducing turnover and integrating workforces by harmonizing compensation expectations

C : It focuses solely on expatriate compensation

D : It minimizes the need for alignment in non-management roles

Answer: B

Question 4

A company’s expatriate compensation policy includes a "hardship allowance." In which situation is this allowance typically applied?

Options :

A : To offset cost-of-living differences in high-income countries

B : For employees in positions requiring high levels of responsibility

C : For employees assigned to regions with challenging living conditions and health risks

D : To support employees transitioning to home-country assignments

Answer: C

Question 5

Which of the following factors is NOT typically considered in the creation of an international benefits package?

Options :

A : Healthcare requirements

B : Exchange rates

C : Local employment laws

D : Employee marital status

Answer: B