Some Multinationals Still Pay a Premium or Incentive to the Expatriate

question 39

Multiple Choice

Some multinationals still pay a premium or incentive to the expatriate for taking the foreign assignment (often ranging between 10%-30% of base pay) and they may also receive hardship pay if posted to locations where living conditions are more difficult than in the home country because of which of the following?

• A) Extreme weather, civil unrest, and violence aimed at foreigners
• B) Civil unrest and violence aimed at foreigners, limited access to common goods and services
• C) Limited access to common goods and services, extreme weather, civil unrest and violence aimed at foreigners
• D) None of the above

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Definitions:

Gross Margin Ratio

A measure of a company's financial health, calculated as gross profit divided by net sales, showing the percentage of sales revenue that exceeds the cost of goods sold.

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through electronic tracking.

Gross Method

An accounting approach for recording purchases at the gross invoice amount before any trade discounts are taken.

Merchandising Transactions

Business activities related to the buying and selling of merchandise, which may involve inventory purchases, sales transactions, and the return of goods.