What term describes the cost of maintaining an expatriate, typically expressed as a percentage of the home-country cost?

What term describes the cost of maintaining an expatriate, typically expressed as a percentage of the home-country cost?

• A. Cost of Maintaining an Expat
• B. Human Capital
• C. Outsourcing
• D. Freedom of Movement

Answer: (A)

In global mobility budgeting, the concept being tested is the cost of maintaining an expatriate. This term describes the ongoing expenses required to keep an employee abroad, usually expressed as a percentage of the home-country compensation. It accounts for additional elements beyond base salary, such as housing, cost-of-living adjustments, housing and utility allowances, hardship allowances, education for dependents, taxes, relocation and repatriation costs, and any other assignment-specific benefits. This measure helps organizations compare international assignment costs and structure appropriate compensation packages. The other terms don’t fit this idea: human capital refers to the value of an employee’s skills and knowledge, outsourcing is about contracting work to external providers, and freedom of movement relates to the right to travel or relocate.

In global mobility budgeting, the concept being tested is the cost of maintaining an expatriate. This term describes the ongoing expenses required to keep an employee abroad, usually expressed as a percentage of the home-country compensation. It accounts for additional elements beyond base salary, such as housing, cost-of-living adjustments, housing and utility allowances, hardship allowances, education for dependents, taxes, relocation and repatriation costs, and any other assignment-specific benefits. This measure helps organizations compare international assignment costs and structure appropriate compensation packages.

The other terms don’t fit this idea: human capital refers to the value of an employee’s skills and knowledge, outsourcing is about contracting work to external providers, and freedom of movement relates to the right to travel or relocate.