GPHR FREE Global Professional in Human Resources (GPHR) International Total Rewards Questions and Answers 2

Question 1

Which approach to international compensation establishes pay ranges based on the cost of living and market rates in the host country?

Accepted Answer

Host-country localization approach

Answer

Home-country balance sheet approach

Answer

Headquarters-based approach

Answer

Global pay structure approach

Question 2

What is the primary purpose of a tax equalization policy in international total rewards?

Accepted Answer

To ensure assignees pay approximately the same tax they would have paid in their home country

Answer

To minimize the company's overall tax burden across jurisdictions

Answer

To ensure expatriates pay no taxes in either country

Answer

To transfer all tax liability to the host country government

Question 3

When designing an international benefits program, what does the term 'social security totalization agreement' refer to?

Accepted Answer

A bilateral treaty that prevents dual social security taxation for workers in both countries

Answer

An agreement that maximizes social security contributions in both countries

Answer

A policy requiring employees to opt out of all social security programs

Answer

An internal company agreement to fund retirement in the host country

Question 4

Which of the following is a key consideration when implementing a global equity compensation plan?

Accepted Answer

Securities regulations and tax treatment vary significantly by country

Answer

Equity plans are universally tax-exempt in all countries

Answer

Stock options must always vest immediately for international employees

Answer

Restricted stock units are prohibited outside the United States

Question 5

In a balance sheet compensation approach, what does the 'goods and services differential' typically cover?

Accepted Answer

The difference in purchasing power for everyday consumer goods between locations

Answer

The cost difference in housing between home and host locations

Answer

The total relocation package including all moving expenses

Answer

The currency exchange rate fluctuation between two countries

Question 6

What is a 'split payroll' arrangement in international compensation?

Accepted Answer

Paying a portion of compensation in the home country currency and a portion in the host country currency

Answer

Dividing an employee's salary equally between two employees

Answer

Alternating pay periods between two different bank accounts

Answer

Reducing salary by half during international assignments