What Is One Benefit to Reducing the Use of Expatriates

question 18

Multiple Choice

What is one benefit to reducing the use of expatriates?

• A) It is more cost effective to use host country nationals that to relocate expatriates and their families.
• B) It is difficult to find employees willing to relocate to another country.
• C) One can usually find more technically skilled workers in the host country than in the home country.
• D) Immigration and customs laws are making it more difficult to use overseas employees unless absolutely necessary.

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Definitions:

Operating Expenses

Costs associated with a company's main operational activities, such as rent, utilities, and payroll.

Incremental Interest Rate

The additional interest rate applied to borrowing beyond a predetermined threshold, or the rate used to evaluate the cost of potential projects over the cost of capital.

Present Value

The valuation of an expected income stream determined by discounting the future income to its value in today's dollars.

Interest Expense

This is the cost incurred by an entity for borrowed funds, and it is typically reported on the income statement as a non-operating expense.