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

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

Question 3

In which scenario would a "split-pay" approach to compensation be most advantageous for anexpatriate on a long-term assignment?

Options :

A : When the expatriate’s home and host countries have significant currency stability

B : When the expatriate wants to save in their home currency but cover expenses in the host country

C : When the host country’s currency is devalued against the home currency

D : When there is a strong international currency regulation in the host country

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

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

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