Which of the Following Is True of the Four Components

question 55

Multiple Choice

Which of the following is true of the four components of expatriates' total pay package?

• A) Usually, the employer of an expatriate withholds the amount of tax to be paid in the host country, then pays the taxes due in the parent country.
• B) Housing allowances ensure that the expatriate can maintain the same standard of living as other employees in the host country.
• C) Expatriates' salaries are usually lower than the pay of employees working at the headquarters.
• D) Determining the base salary is simple because exchange rates rarely fluctuate.
• E) Most benefits issues have to do with whether an employee can use the same benefits in the foreign country.

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Definitions:

Budget Equation

An equation that represents the balance between an individual's or entity's income and expenses.

Leisure

Time spent not working and free from obligations, often dedicated to relaxation or enjoyment.

Nonlabor Income

Income received that is not directly related to current employment or work effort, such as dividends or rental income.

Wage Rate

The amount of compensation or payment in terms of money received by an employee from an employer in exchange for performing specific work or tasks per unit of time.