GPHR Bootcamp, 3.2023 Flashcards
(200 cards)
What are the 2 primary purposes of Expatriate Compensation?
- Encouraging qualified employees to accept foreign assignments
- Removing financial obstacles that hinder the employee’s ability to relocate to a foreign post
What are 2 strategies organizations use to assist with the cost of global assignments? (Hint: they’re so expensive that organizations have taken to limiting them)
- Allowances
- Premiums
This concept was developed as part of a tax equalization approach to expatriate pay. the idea is to ensure that individuals effectively pay the same amount of tax they would hypothetically have paid at home. The company pays any taxes that exceed the expatriate’s hypothetical tax liability
Hypothetical tax
Tool for calculating purchasing power parity that compares prices of a Big Mac throughout the world
The Big Mac Index
An approach to developing an expatriate compensation package that ensures the expat is “made whole” and does not lose money by taking the assignment
Balance Sheet Approach
Financial payments over and above regular base pay, typically between 10% and 30% of base pay. Designed to induce a candidate and his family to leave familiar working and living conditions and to continue employment in another country
Foreign Service Premium
Results in an unexpected windfall of money for the assignee when local taxes are lower than were originally projected.
Tax protection plans
A monetary measurement of development that takes into account what money buys in different countries
Purchasing Power Parity
Bilateral agreements entered into by many countries to eliminate double taxation for individuals on international assignments
Totalization Agreements
UN Agency that brings together governments, employers, and workers of its member states in common action to promote decent work throughout the world
International Labor Organization (ILO)
Confederation of 19 nations with agreements on trade facilitation in the Pacific region
Asia-Pacific Economic Cooperation (APEC)
Formal Structure to facilitate negotiations between nations to reduce trade barriers and settle disputes
World Trade Organization (WTO)
Combines resources to balance the activities of other global economic powers, especially NAFTA and the EU. Common market of the south- Argentina, Brazil, Paraguay, and Uraguay
Mercosur
Act that forbids US Organizations from making or offering illegal payments or gifts to officials of foreign governments in order to get or retain business
US Foreign Corrupt Practices Act (FCPA)
Small payment, permitted under the US Foreign Corrupt Practice Act (FPCA) for expediting “routine governmental action” such as obtaining permits, processing papers, providing normal government services, etc.
Grease, or Facilitating payments
Largest regional trading assembly that has a common currency and allows workers to move across country borders without quotas, visas, or passports
European Union (EU)
An elected employee group that shares plant level responsibility with management regarding issues involved with working conditions.
Employer must share and discuss all business decisions with the group.
They facilitate communication between employees and employer.
Works Council
Process designed to resolve disputes outside publicly available administrative agencies our court
Alternative Dispute Resolution (ADR)
Means by which a neutral third party assists in resolving a grievance between parties. Win-win (both parties negotiate to a mutually-satisfactory resolution of the grievance)
Mediation
The final step in most union grievance procedures in which a neutral third party renders a binding decision. Win-lose (one party wins all, the other loses)
Arbitration
Which employee action is most likely to contribute to developing a global mindset?
A. Completing cultural diversity courses the employer offers
B. Demonstrating motivation to work in another country
C. Spending time in educational programs abroad
D. Learning another language based on organizational locations
C. Spending time in educational programs abroad
Rationale: The candidate is most likely to have a global mindset are the employees who have actually spent time living outside their countries. this provides daily interactions that embody cultural differences. The other actions will also help develop a global mindset, but they do not provide the firsthand, intensive experience of living in another culture.
A well-funded Asian art museum includes a new traditional tea garden that can accommodate both public and private events. Current staff have little understanding of Japanese tea rituals, and the museum is willing to invest in staff development. Which is the best approach HR should recommend to develop cultural awareness and appreciation for the tea garden experience?
A. Transfer a tea ceremony master from Tokyo to train the event planning staff
B. Conduct internal training on tea culture experience that includes proper behavior
C. Travel to Tokyo to experience tea culture and tour tea gardens
D. Have the team divide assignments to research the tea garden experience by topic and cross-train each other
C. Travel to Tokyo to experience tea culture and tour tea gardens
Rationale: For the event planning staff to develop cultural awareness and appreciation for the rooftop tea garden experience, they should travel to Tokyo, if possible. The other options may aid staff in understanding but will not offer the cultural immersion to allow them to return and relay the experience that clients will expect.
Which 2 tendencies are critical to acquiring a global mindset?
A. Parochialism and exclusiveness
B. Cosmopolitanism and sophistication
C. Ethnocentrism and self-satisfaction
D. Curiosity and change acceptance
D. Curiosity and change acceptance
Rationale: a global mindset is characterized by intellectual curiosity, a desire to understand larger contexts and multiple perspectives. Employers with a global mindset tend to see change as an opportunity.
A US-based high tech company decides to build an R&D Office in Bangalore, India. Which of the following terms describes this kind of expansion decision?
A. Greenfield operation
B. International merger
C. Joint Venture
D. Trading House
A. Greenfield Operation