Online Access Free GR7 Practice Test

Which of the following best describes a "dual pay" approach in expatriate compensation?

• 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.Avoiding local currency use for expatriates
• D.Standardizing pay across all expatriates

When adopting a "host-country approach" to expatriate compensation, what is one primary drawback of this method?

• A.It may result in lower-than-expected income for expatriates from high-income countries
• B.It simplifies payroll processing across international locations
• C.It is less expensive than the home-country approach
• D.It often fails to account for exchange rate fluctuations

In designing a global "executive compensation" package, which of the following is a primary challenge for ensuring both competitive and compliant practices?

• A.Reducing compensation packages to align with lower-cost regions
• B.Standardizing bonuses without performance consideration
• C.Ensuring equity-based compensation does not exceed local base salaries
• D.Balancing compensation that aligns with home-country standards while meeting host-country legal requirements

A company is implementing a "retirement benefits plan" for its global workforce. Which of the following is a critical challenge in designing a globally effective retirement plan?

• A.Offering the same retirement benefits across all countries
• B.Only offering retirement benefits to employees in high-income countries
• C.Providing a uniform retirement age across regions
• D.Adapting retirement contributions to local tax-favorable structures while ensuring competitive contributions

A company offers a "cafeteria-style benefits plan" for employees in multiple countries. What is a primary advantage of this approach?

• A.The plan requires less administrative effort than fixed benefits plans
• B.Employees can select benefits that align with their individual needs and cultural expectations
• C.It allows the company to standardize benefits across all locations
• D.Benefits costs are reduced due to simplified implementation