International Relocation Flashcards
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Read the first 6 International Relocation flashcards as text
What document must a relocating employee obtain before legally working in a foreign country?
Answer: Work permit or work authorization visa
A work permit or employment-based visa is legally required before a foreign national can perform paid work in most countries.
Which compensation approach pays expatriates based on their home-country salary plus additional allowances?
Answer: Balance sheet approach
The balance sheet approach maintains home-country purchasing power by topping up salary with allowances for housing, taxes, and cost-of-living differences.
What is 'tax equalization' in international relocation?
Answer: A policy ensuring an expatriate pays no more or less tax than they would at home
Tax equalization neutralizes the tax impact of an international assignment so the expatriate is neither advantaged nor disadvantaged compared to staying home.
A cost-of-living allowance (COLA) for an international assignee is designed to:
Answer: Offset the difference in purchasing power between home and host countries
COLA compensates for higher goods-and-services costs in the host country so the assignee's standard of living remains equivalent to home.
What is the primary purpose of a cultural orientation program prior to an international assignment?
Answer: To prepare the employee and family for cultural differences and social norms in the host country
Cultural orientation reduces culture shock and improves assignment success by familiarizing assignees with business practices, customs, and daily life abroad.
Which term describes the emotional disorientation felt when returning home after an extended international assignment?
Answer: Reverse culture shock
Reverse culture shock occurs when repatriates find that home feels unfamiliar after adapting to life abroad.