Question 1

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 2

In the context of global rewards, what is an advantage of including "nonstatutory benefits" as part of an organization’s total rewards package?

Options :

A : They are universally accepted across countries

B :

They provide flexibility to offer regionally competitive benefits beyond statutory minimums, improving attraction and retention

C : They are mandated by local laws and require minimal customization

D : They decrease the overall cost of benefits

Answer: B

Question 3

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

Question 4

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 5

A company with a strong presence in both developed and developing countries is considering its global pay strategy. Which approach would likely be most effective in attracting top talent globally while balancing pay discrepancies between high-cost and low-cost regions?

Options :

A : Offering a flat global salary for similar roles

B : Implementing region-specific salary bands based on local market data

C : Using a standardized pay grade structure with no regional adjustments

D : Basing pay entirely on home country economic conditions

Answer: B