In a short essay, discuss the main elements of a compensation ...

[WWatsford]

In a short essay, discuss the main elements of a compensation package. Why are taxes a concern for expatriates?
 
  What will be an ideal response?

Question 2

Incoterms were developed by the International Chamber of Commerce in order to ________.
 
  A) provide a mediator to settle disputes between buyers and sellers
  B) standardize the cost of shipping and insuring exported items
  C) define how the buyer and seller share freight and insurance costs
  D) reduce the costs of shipping and insuring exported products

[mmj22343]

Answer to Question 1

Compensation packages vary across nations because of differences in legally mandated benefits, tax laws, cost of living, local tradition, and culture. Employees posted abroad usually expect to be compensated at a level that allows them to maintain the living standard they enjoy at home. Managers typically consider four elements when developing compensation packages for employees working abroad: 1. base remuneration or wages, 2. benefits, 3. allowances, and 4. incentives.

Expatriates can face tax bills from both the host and home countries. Most home country governments allow the expatriate to minimize this double taxation, and employers will usually reimburse any extra tax burden.

Answer to Question 2

C