Global Mobility Flashcards
7 cards from real GPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Global Mobility flashcards as text
A company is sending an employee on a long-term assignment to Germany. Which tax equalization approach ensures the employee pays neither more nor less tax than they would have at home?
Answer: Tax equalization
Tax equalization neutralizes the tax impact of the assignment, keeping the employee's tax burden the same as if they had stayed home.
Which document is typically required by the host country to legally authorize a foreign national to perform work duties?
Answer: Work visa or work authorization permit
A work visa or work authorization permit is the legal document that grants foreign nationals permission to work in a host country.
A 'balance sheet' approach to expatriate compensation is designed to:
Answer: Maintain the expatriate's home-country purchasing power and lifestyle
The balance sheet approach equalizes purchasing power so expatriates can maintain their home-country standard of living abroad.
Which of the following is a key characteristic of a 'localization' approach to global assignments?
Answer: The employee is transitioned to host-country compensation and benefits packages
Localization moves the employee to local salary structures and benefit plans, reducing the cost of long-term or permanent international placements.
A split payroll arrangement in global mobility means:
Answer: Part of the salary is paid in the home country and part in the host country
Split payroll divides an assignee's salary between home and host country currencies to meet local tax, social security, and living expense obligations.
The primary purpose of a 'trailing spouse' program in global mobility is to:
Answer: Support the spouse's career, social integration, and well-being during the assignment
Trailing spouse programs address the career and personal challenges faced by accompanying partners, which is a leading cause of assignment failure.
Under the US Foreign Earned Income Exclusion (FEIE), a US citizen abroad can exclude foreign earned income if they meet which test?
Answer: The bona fide residence or physical presence test
The IRS requires US citizens to meet either the bona fide residence test or the 330-day physical presence test to qualify for the FEIE.