Question 1

Which of the following are used by the State Department to determine the 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 2

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

Accepted Answer

Inflation

Question 3

Tuition reimbursement and day care assistance fall under this category.

Accepted Answer

A)   boosted enhancements
B)   protection programs
C)   paid time off
D)   service practices

Question 4

When is a goods and services allowance given?

Accepted Answer

A)   to any person willing to work outside of the U.S.
B)   when there is a high level of stagflation
C)   when the cost of living is lower in the foreign work location than in the U.S.
D)   when the cost of living is higher in the foreign work location than in the U.S.

Question 5

If the local index in Tegucigalpa,Honduras is 99,what does that mean?

Accepted Answer

A)   the cost of living in Tegucigalpa is 1% lower than in Washington, D.C.
B)   the cost of living in Tegucigalpa is 99% lower than in Washington, D.C.
C)   the cost of living in Tegucigalpa is 1% higher than in Washington, D.C.
D)   the cost of living in Tegucigalpa is 99% higher than in Washington, D.C.

Question 6

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

Accepted Answer

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

Question 7

Your company is sending Sheila on a six-month assignment to Sweden,so you should probably use which method to determine her base pay?

Accepted Answer

A)   headquarters-based
B)   host country-based
C)   home-country based
D)   foreign country-based

Question 8

What law mandates that management bargain in good faith with labor unions over terms of employment such as wages?

Accepted Answer

A)   Fair Labor Standards Act of 1938
B)   National Labor Relations Act of 1935
C)   North American Free Trade Agreement
D)   North American Treaty Organization

Question 9

International employees are categorized into one of these three titles.

Accepted Answer

A)   expatriates, third country national, headquarter national
B)   host country national, third country national, expatriates
C)   repatriates, host country national, third country nationals
D)   headquarter national, expatriates, home country nationals

Question 10

Juanita was told that on her first overseas assignment she would be getting a foreign service premium.That probably means she will be there at least how long?

Accepted Answer

A)   12 months
B)   6 months
C)   3 months
D)   24 months

Question 11

________ is the transition process of working in a domestic assignment in a worker's home country after having worked on an international assignment abroad.

Accepted Answer

The answer of ________ is the transition process of working...

Question 12

What is the balance sheet approach? When is its use most appropriate?

Accepted Answer

The balance sheet approach provides expa...

Question 13

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 reimburses his employer.
B)   his employer reimburses Josh.
C)   under tax equalization, neither Josh nor his employer reimburses.
D)   foreign government reimburses Josh.

Question 14

If your company 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 B

Question 15

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 16

An ________ is the price at which one country's currency can be swapped for another.

Accepted Answer

The answer of An ________ is the price at which...

Question 17

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 18

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 19

What does the term repatriation refer to?

Accepted Answer

A)   sending an expatriate's family to the foreign country with him
B)   an expatriate going back to an overseas assignment she had been to before
C)   an expatriate returning home to work after completing an overseas assignment
D)   teaching an expatriate about the customs and culture of a foreign country

Question 20

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

Accepted Answer

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

Exam 14: Compensation Expatriates

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedInflation

Tuition reimbursement and day care assistance fall under this category.

Correct AnswerverifiedShow Answer

When is a goods and services allowance given?

Correct AnswerverifiedShow Answer

If the local index in Tegucigalpa,Honduras is 99,what does that mean?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Your company is sending Sheila on a six-month assignment to Sweden,so you should probably use which method to determine her base pay?

Correct AnswerverifiedShow Answer

What law mandates that management bargain in good faith with labor unions over terms of employment such as wages?

Correct AnswerverifiedShow Answer

International employees are categorized into one of these three titles.

Correct AnswerverifiedShow Answer

Juanita was told that on her first overseas assignment she would be getting a foreign service premium.That probably means she will be there at least how long?

Correct AnswerverifiedShow Answer

________ is the transition process of working in a domestic assignment in a worker's home country after having worked on an international assignment abroad.

Correct AnswerverifiedShow Answer

What is the balance sheet approach? When is its use most appropriate?

Correct AnswerverifiedThe balance sheet approach provides expa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

An ________ is the price at which one country's currency can be swapped for another.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

What does the term repatriation refer to?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Inflation

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The balance sheet approach provides expa...
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B

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