Definitions

Question 1

Delphi Technique

Answer 1

A number of experts take turns at presenting a forecast statement. As the process continues, the forecast is subject to other members’ revisions until a viable forecast emerges that is a blended version of the various expert’s opinion.

Question 2

A company located in and doing business in the state/country in which it was incorporated.

Answer 2

Domestic Corporation

Question 3

Cost of living index, less generous than a Standard Index. Used to calculate COLA. It assumes the expat will adjust their purchasing behavior in the host country by buying local product and brands, in place of name brands and more expensive products from their home country.

Answer 3

Efficient Purchaser Index

Question 4

Assumption your own culture is correct

Answer 4

Egocentrism

Question 5

Hypothetical Tax

Answer 5

Approx. Amount of home country tax, generally calculated on home country base salary, bonus, incentive compensation, and stock option income that the expat would have paid if they had remained in the home country. Generally includes a calc for ha home state tax as well as federal and social taxes.