CRP International Relocation 1

Question 1

What document must a relocating employee obtain before legally working in a foreign country?

Accepted Answer

Work permit or work authorization visa

Answer

A work permit or employment-based visa is legally required before a foreign national can perform paid work in most countries.

Question 2

Which compensation approach pays expatriates based on their home-country salary plus additional allowances?

Accepted Answer

Balance sheet approach

Answer

The balance sheet approach maintains home-country purchasing power by topping up salary with allowances for housing, taxes, and cost-of-living differences.

Question 3

What is 'tax equalization' in international relocation?

Accepted Answer

A policy ensuring an expatriate pays no more or less tax than they would at home

Answer

Tax equalization neutralizes the tax impact of an international assignment so the expatriate is neither advantaged nor disadvantaged compared to staying home.

Question 4

A cost-of-living allowance (COLA) for an international assignee is designed to:

Accepted Answer

Offset the difference in purchasing power between home and host countries

Answer

COLA compensates for higher goods-and-services costs in the host country so the assignee's standard of living remains equivalent to home.

Question 5

What is the primary purpose of a cultural orientation program prior to an international assignment?

Accepted Answer

To prepare the employee and family for cultural differences and social norms in the host country

Answer

Cultural orientation reduces culture shock and improves assignment success by familiarizing assignees with business practices, customs, and daily life abroad.

CRP - Certified Relocation Professional Practice Test

CRP - Certified Relocation Professional Practice Test

CRP International Relocation 1