Question

Which of the following statements is true of international premium?

a. It is a pay raise for domestic employees.
b. It is the money paid to domestic firms by foreign firms.
c. It is the amount of money paid by international firms to government.
d. It is a significant pay raise a manager gets when working overseas.

Answer 1

The correct option is (d)

Step-by-step explanation:

Multinational corporations have operations across the globe. They send domestic employees to other locations for various purposes like providing training to the employees in the foreign location.

Sometimes, domestic employees have to stay and work in foreign companies for an indefinite period. In such cases, these employees are given significant raise in pay which is termed as international premium. It is a kind of incentive for working away from home country.