Question 1

Many employers cover the expense of one or more trips back to the home country each year.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following involves a payment to compensate for differences in expenditures between the home country and the foreign country?

Accepted Answer

A)   Home leave allowance
B)   Housing allowance
C)   Cost-of-living allowance
D)   Relocation allowance

Question 3

Most US PCNs typically:

Accepted Answer

A)   Remain under their home country benefit plan
B)   Adopt US benefit plans
C)   Take advantage of both their home countries' and the US's benefit plans
D)   Do not receive benefits,only allowances

Question 4

In a recent cost of living survey,the most expensive city to live in is:

Accepted Answer

A)   London
B)   New York
C)   Zurich
D)   Tokyo

Question 5

An advantage of the Going Rate Approach is that:

Accepted Answer

A)   There is variation between assignments for the same employee
B)   There is equality in pay with local nationals
C)   There is equity between assignments
D)   It results in fewer taxes

Question 6

The base salary for an international transfer is linked to the salary structure in the host country using:

Accepted Answer

A)   Tax protection
B)   Tax equalization
C)   The Going Rate Approach
D)   The Balance Sheet Approach

Question 7

Generally the developed countries tend to rank as more expensive than developing countries because their wage costs are higher.

Accepted Answer

A) True 
 B)False

Question 8

The Balance Sheet Approach links the base salary for PCNs and TCN to the salary structure of the relevant home country.

Accepted Answer

A) True 
 B)False

Question 9

It is a common practice for MNEs to use a home-country balance sheet approach for TCNs except in the USA.

Accepted Answer

A) True 
 B)False

Question 10

Foreign service inducements are usually made in the form of a percentage of salary and usually amount to 30 to 60 percent of base pay.

Accepted Answer

A) True 
 B)False

Question 11

Pension plans are very easy to deal with from country-to-country,as national practices are similar

Accepted Answer

A) True 
 B)False  False

Question 12

Pay strategy may be defined in terms of a series of interlocking strategic choices on:

Accepted Answer

A)   Basis of pay,units of aggregations,patterns of variation in pay and job evaluations
B)   Industry/competition,size of organization,organizational structure and job evaluations
C)   Employment relationships,corporate culture,basis of pay and job evaluation
D)   Local market conditions,laws,basis of pay and job evaluations A

Question 13

The term "base salary" acquires a somewhat different meaning when employees go abroad.

Accepted Answer

A) True 
 B)False

Question 14

The Going Rate Approach is based on local market rates.

Accepted Answer

A) True 
 B)False

Question 15

A seamless network of pay providing members,made up of global firms,their specialist consultant and local and regional public and private interests are:

Accepted Answer

A)   A reality
B)   An impossibility
C)   Not considered critical to MNEs executives
D)   A goal not yet a reality

Question 16

Firms will never provide standardized "core" pay in the global firm.

Accepted Answer

A) True 
 B)False

Question 17

Present the general objectives of international compensation for a firm.

Accepted Answer

·Consistent with the overall strategy,st...

Question 18

Which of the following is the foundation block for international compensation whether the employee is a PCN or TCN?

Accepted Answer

A)   Tax protection
B)   Foreign service inducement/hardship premium
C)   Allowances
D)   Base salary

Question 19

PCNs and TCNs do not usually receive the same treatment concerning educational expenses.

Accepted Answer

A) True 
 B)False  False

Question 20

Describe some categories of Basis-for-Pay of strategic pay systems.

Accepted Answer

·Job vs.skill as basis for pay
·Performa...

Exam 8: International Compensation

Many employers cover the expense of one or more trips back to the home country each year.

Correct AnswerverifiedShow Answer

Which of the following involves a payment to compensate for differences in expenditures between the home country and the foreign country?

Correct AnswerverifiedShow Answer

Most US PCNs typically:

Correct AnswerverifiedShow Answer

In a recent cost of living survey,the most expensive city to live in is:

Correct AnswerverifiedShow Answer

An advantage of the Going Rate Approach is that:

Correct AnswerverifiedShow Answer

The base salary for an international transfer is linked to the salary structure in the host country using:

Correct AnswerverifiedShow Answer

Generally the developed countries tend to rank as more expensive than developing countries because their wage costs are higher.

Correct AnswerverifiedShow Answer

The Balance Sheet Approach links the base salary for PCNs and TCN to the salary structure of the relevant home country.

Correct AnswerverifiedShow Answer

It is a common practice for MNEs to use a home-country balance sheet approach for TCNs except in the USA.

Correct AnswerverifiedShow Answer

Foreign service inducements are usually made in the form of a percentage of salary and usually amount to 30 to 60 percent of base pay.

Correct AnswerverifiedShow Answer

Pension plans are very easy to deal with from country-to-country,as national practices are similar

Correct AnswerverifiedFalse

Pay strategy may be defined in terms of a series of interlocking strategic choices on:

Correct AnswerverifiedA

The term "base salary" acquires a somewhat different meaning when employees go abroad.

Correct AnswerverifiedShow Answer

The Going Rate Approach is based on local market rates.

Correct AnswerverifiedShow Answer

A seamless network of pay providing members,made up of global firms,their specialist consultant and local and regional public and private interests are:

Correct AnswerverifiedShow Answer

Firms will never provide standardized "core" pay in the global firm.

Correct AnswerverifiedShow Answer

Present the general objectives of international compensation for a firm.

Correct Answerverified·Consistent with the overall strategy,st...View AnswerShow Answer

Which of the following is the foundation block for international compensation whether the employee is a PCN or TCN?

Correct AnswerverifiedShow Answer

PCNs and TCNs do not usually receive the same treatment concerning educational expenses.

Correct AnswerverifiedFalse

Describe some categories of Basis-for-Pay of strategic pay systems.

Correct Answerverified·Job vs.skill as basis for pay·Performa...View AnswerShow Answer

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·Consistent with the overall strategy,st...
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·Job vs.skill as basis for pay
·Performa...
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