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WorldatWork GR7 Exam Questions
International Remuneration - An Overview of Global Rewards (Page 4 )

Updated On: 16-Feb-2026
Page 4 of 27
PDF with 130 Questions

A multinational organization is revising its international benefits offerings to address the needs of its diverse workforce across various regions. The company wants to avoid one-size-fits-all solutions and instead wants to tailor benefits based on local preferences and statutory requirements.
Which strategy would best support this objective while managing costs effectively?

  1. Standardized benefits across all regions to streamline administration
  2. Regionalized benefits packages that reflect local norms and legal requirements
  3. Expatriate-focused benefits that prioritize employees on international assignments
  4. Performance-based benefits tied to individual country GDP

Answer(s): B



In determining the overall costs associated with expatriate compensation, which of the following factors would NOT typically be included in a "cost-of-living allowance" calculation?

  1. Housing expenses based on the host country market
  2. The expatriate's base salary adjustment
  3. Education expenses for dependents
  4. Local transportation and goods

Answer(s): B



A company is sending employees on a short-term assignment to a country with a high income tax rate.
Which of the following is the most effective approach for managing tax implications to avoid financial strain on the assignees?

  1. Allow employees to manage taxes independently
  2. Implement a tax equalization policy covering both home and host country taxes
  3. Reduce the employees' base salary to offset the higher tax rates
  4. Only reimburse taxes for high-level executives

Answer(s): B



When an organization adopts a "headquarters-based" approach to global compensation, what is one major disadvantage it might encounter?

  1. Difficulty in creating standardized pay levels
  2. Increased administrative burden due to varying exchange rates
  3. Reduced ability to attract talent in local markets due to lack of alignment with local standards
  4. Limited access to expatriate talent due to high costs

Answer(s): C



A company using a "global grading" system is reviewing salary ranges across different regions. In this system, employees at the same level receive similar pay grades worldwide, regardless of geographic location.
What is a potential drawback of this approach?

  1. Difficulty in defining performance metrics across regions
  2. Reduced incentive for employees in high-cost regions
  3. Increased administrative costs for currency conversions
  4. Complications in payroll processing across different time zones

Answer(s): B






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