TREX Global & International Compensation 2

Question 1

When an organization transitions an expatriate from an international assignment package to local employment terms in the host country, this process is known as:

Accepted Answer

Localization

Answer

Repatriation

Answer

Globalization

Answer

Normalization

Question 2

Which of the following is typically NOT included in a standard long-term international assignment package?

Accepted Answer

Home-country equity vesting acceleration

Answer

Housing allowance

Answer

Home leave airfare

Answer

Tax equalization

Question 3

A 'shadow payroll' is maintained during an international assignment primarily to:

Accepted Answer

Track and report earnings for social security or tax compliance purposes in the home country

Answer

Pay the employee in both home and host currencies simultaneously

Answer

Create a secondary compensation record for performance review purposes

Answer

Calculate the employee's hypothetical tax withholding in the host country

Question 4

Short-term international assignments (typically under 12 months) differ from long-term assignments primarily in that they:

Accepted Answer

Usually do not trigger permanent establishment or residency implications

Answer

Require full tax equalization in all cases

Answer

Always include full relocation of the employee's household

Answer

Require host-country national insurance enrollment

Question 5

Which element of expatriate compensation is designed to ensure the employee retains the same relative home equity position (in terms of housing) as they would have had at home?

Accepted Answer

Norm housing deduction

Answer

Host-country housing allowance

Answer

Mortgage subsidy

Answer

Property equalization payment

Question 6

Repatriation challenges in international compensation most commonly include:

Accepted Answer

Reverse culture shock and salary compression when returning to home-country pay scales

Answer

Inability to transfer pension credits back to the home country

Answer

Loss of home-country citizenship rights

Answer

Mandatory re-enrollment in host-country benefit programs

Question 7

A 'goods and services' differential in an international assignment is intended to compensate for:

Accepted Answer

Differences in the quality and availability of consumer goods between home and host countries

Answer

The cost of shipping personal goods from home to the host country

Answer

Host-country import tariffs on personal property

Answer

Currency conversion fees on international wire transfers