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When adopting a "host-country approach" to expatriate compensation, what is one primary drawback of this method?
A. It often fails to account for exchange rate fluctuations
B. It may result in lower-than-expected income for expatriates from high-income countries
C. It simplifies payroll processing across international locations
D. It is less expensive than the home-country approach
Answer: B
NEW QUESTION # 114
A company using a "balance sheet approach" includes a "hardship premium" in the expatriate compensation package. Under what condition is this premium typically granted?
A. When the assignment involves significant health and safety risks
B. Only when the cost of living is substantially lower in the host country
C. For any international assignment, regardless of location
D. For employees who have been on assignment for over a year
Answer: A
NEW QUESTION # 115
In "cross-border mergers," which of the following is a primary reason for HR to conduct a cultural assessment?
A. To understand cultural differences that may affect employee integration and retention post-merger
B. To ensure compliance with local tax laws
C. To standardize HR policies across regions
D. To identify discrepancies in payroll systems
Answer: A
NEW QUESTION # 116
When developing a "global executive compensation" plan, which of the following is a primary factor in ensuring competitiveness?
A. Reducing compensation in high-cost regions to maintain global equity
B. Limiting benefits for executive roles
C. Balancing competitive pay with local regulatory requirements, tax implications, and cultural expectations
D. Offering identical pay structures globally
Answer: C
NEW QUESTION # 117
Which of the following BEST describes the purpose of "mobility premiums" in an international remuneration package?
A. To compensate employees for the inconvenience and challenges of relocating
B. To provide financial incentives based on international tax differences
C. To account for currency fluctuations in the host country
D. To align expatriate compensation with local salary ranges
Answer: A
NEW QUESTION # 118
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