Question

Which of the following factors is most responsible for the high number of employees who return home earlier than scheduled from an international assignment?

unstable political environment

poor performance

family issues

unfavorable currency exchange rate

Answer 1

International assignment management is one of the hardest areas for HR professionals to master and are very costly. Yet many organizations fail to get it right. Despite their significant investments in international assignments, companies still report a 42 percent failure rate in these assignments.

There can be many reasons for such failures and all of them that are given in the options are a part of it. All of them are somehow responsible for the whole thing. But the most favourable reason out of most is unfavorable currency exchange rate.

Foreign-exchange risk is the risk that an asset denominated in a foreign currency will lose value as a result of unfavorable exchange rate fluctuations between the investment's foreign currency and the investment holder's domestic currency. An employee never likes this happening. So, they prefer to move back home.