Today, as you checked your email, you read emails from several of the transferred employees, who were very nervous and apprehensive about their impending transfer. They have requested that you address the following questions before they consider whether to accept or reject the transfer. The following are their questions:

Dear HR: I am worried about the cost of living in Australia because it is projected to be almost $10\%$ higher than in the United States. How is expatriate compensation determined versus compensation for those who perform the same duties in the United States?$*$

Dear HR: Relocation to a foreign country can be tremendously expensive, especially to find lodging, travel to and from the United States to visit my family during vacations, or the possible sale of my current home. What types of travel and relocation expenses can I expect to be paid for by the organization, and which expenses would be my responsibility?