The Goods and Services Differential Provides the Basis for Paying

question 22

Multiple Choice

The goods and services differential provides the basis for paying expatriates a cost-of-living allowance. What factor does not need to be considered when calculating the differential?

• A) A comparison of the cost of a "market basket" of goods and services in the home country with the cost of a similar basket in the assignment country
• B) Coming up with prices for items such as domestic supplies, food, transportation, and utilities across countries is a simple, logical process, but must be updated frequently
• C) Goods and services differentials need to be monitored and periodically adjusted up or down
• D) Currency swings can impact goods and services differentials by swelling the value of differentials when local currencies drop significantly and shrinking them when those currencies soar

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Definitions:

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A random selection process where winners are chosen from participants who have purchased tickets, often used for prizes or allocation of scarce resources.

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The act of matching attitudes, beliefs, behaviors, and practices to societal or group norms.

Group's Attractiveness

The qualities or attributes of a group that draw members to it and contribute to their desire to belong and participate actively.