In terms of expatriate pay, which of the following is a characteristic of a foreign service premium?
A. It allows a firm to pay expatriates' income tax in the host country.
B. It ensures that expatriates' children receive adequate schooling.
C. It helps to evaluate expatriates' performance without any unintentional bias.
D. It ensures that expatriates are prepared for reentry into their home-country organization.
E. It compensates expatriates for having to live in an unfamiliar country.
Answer: E. It compensates expatriates for having to live in an unfamiliar country
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International Business
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