CRP International Relocation 2 — Questions and Answers
Question 1: Which type of international assignment typically lasts one to three years?
- Short-term assignment
- Long-term assignment (Correct answer)
- Commuter assignment
- Extended business trip
Correct answer: Long-term assignment
Long-term assignments generally range from one to three (sometimes five) years and involve full expatriate packages.
Question 2: What does 'localization' mean in the context of international mobility?
- Translating HR documents into the local language
- Transitioning an expatriate to local employment terms and compensation (Correct answer)
- Hiring local employees instead of sending expatriates
- Adjusting the employee's work schedule to local time zones
Correct answer: Transitioning an expatriate to local employment terms and compensation
Localization converts an expatriate's compensation and benefits to align with host-country norms, typically reducing the cost to the employer.
Question 3: A 'shadow payroll' is used in international assignments to:
- Pay employees off the books in the host country
- Calculate and report host-country taxes without actually paying salary through the host entity (Correct answer)
- Provide a secondary salary for the spouse
- Hide compensation from host-country authorities
Correct answer: Calculate and report host-country taxes without actually paying salary through the host entity
Shadow payroll fulfills local tax-reporting obligations for a foreign employee whose salary is paid through the home-country payroll.
Question 4: Which allowance helps cover the higher cost of international school fees for an expatriate's children?
- Language allowance
- Education allowance (Correct answer)
- Dependent care credit
- Relocation differential
Correct answer: Education allowance
Education allowances reimburse or pay directly for tuition at international or private schools in the host country.
Question 5: What is a 'hardship allowance' in international relocation?
- Extra pay for employees who decline to relocate
- Additional compensation for assignments to locations with difficult living conditions (Correct answer)
- Insurance coverage for dangerous assignments
- Reimbursement for early lease termination
Correct answer: Additional compensation for assignments to locations with difficult living conditions
Hardship allowances incentivize employees to accept postings to locations with safety risks, extreme climates, limited amenities, or political instability.
Question 6: During repatriation, the employer's most important responsibility is to:
- Recover all relocation costs from the employee
- Provide a suitable role that leverages the skills gained during the assignment (Correct answer)
- Cancel all remaining expatriate benefits immediately
- Ensure the employee returns within the contracted period
Correct answer: Provide a suitable role that leverages the skills gained during the assignment
Meaningful repatriation roles are critical to retaining assignees who return with valuable cross-cultural and international business expertise.
CRP International Relocation 2
Which type of international assignment typically lasts one to three years?