QUESTION: 13

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?

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

Answer(s): B

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QUESTION: 14

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

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

Answer(s): C

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QUESTION: 15

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?

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

Answer(s): B

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QUESTION: 16

Which of the following BEST describes the purpose of "mobility premiums" in an international remuneration package?

To account for currency fluctuations in the host country
To compensate employees for the inconvenience and challenges of relocating
To provide financial incentives based on international tax differences
To align expatriate compensation with local salary ranges

Answer(s): B

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Free WorldatWork GR7 Exam Questions (page: 5)

QUESTION: 13

QUESTION: 14

QUESTION: 15

QUESTION: 16

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