The Use of This Expatriate Compensation Model May Lead to Repatriation

question 22

Multiple Choice

The use of this expatriate compensation model may lead to repatriation problems for TCNs and inpatriates from lower-salary countries who find that a return to their home country salary structure means a significant decrease in pay.

• A)Headquarters-Based Model
• B)Modified Home-Country Model
• C)International Citizen Model
• D)Lump-Sum Model

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Definitions:

Net Operating Income

A financial metric that calculates the profitability of a business's core operations, excluding the costs and returns of financial activities and one-time events.

Scrap Value

The estimated resale value of an asset at the end of its useful life, which is considered during the depreciation calculation of that asset.

Required Rate of Return

The minimum rate of return on an investment deemed acceptable by an investor, considering the investment's risk.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.