U.S. Expatriate Handbook: Guide to Living & Working Abroad 0966317106, 9780966317107

Citation preview

MARIN COUNTY FREE LIBRARY

3 1111 01982 7953

U.S.

Expatriate

Handbook Guide

to Living

&

Working Abroad John W.

Adams

Civic Center 650. 14 Adams

John W expatriate handbook guide to living & working abroad 31111019827953 Adams^

U. S.

DATE DUE

JUL2 77nni

MAY9

37fltr/

iMifl Zoo^ TFR

1 ZOn?i

ATE iving

&

abroad OEMCO,

INC, 38-2931

jonn

vv.

/\uams

West Virginia University

College of Business

& Economics

Copyright 1998

This book has been published by the

West Virginia University College of Business and Economics. Dean: Sydney Chair,

Department

V. Stern

of Finance: William B. Riley

Director of Communications: Editor:

Lynn

Price Reinke

Connie Banta

Graphic Design: Cheryl Carr Cartoons: David Hereth

© John

W. Adams and

the

West Virginia University Research Corporation

ISBN 0-9663171-0-6

Table of Contents v

Preface

A Personal Note from the Author Part One: Thinking About

....

vii

It

Chapter

1

2

Introduction: Is this the Opportunity of a Lifetime

1

Career Considerations

9

Part Two: Working and Living

Abroad 3

Cross-Cultural Communication

17

4

Family Matters

31

5 Health Care Overseas

6 Consular Assistance and

53

Legal

Considerations

61

Part Three: Financial Planning FOR Life Abroad

7 Compensation Package

73

8 The Taxman Cometh

83

9 Currency Exposure

Risk

89

10

Banking and Investment

95

11

Insurance and Estate Planning

107

Part Four: Parting Words

12 Coming Home

121

13 A Few Useful References

127

14

Preparing to Checklist

Go

-

Timetable and 135

Dedication Dedicated

to

Linda Pay titer who

kept this ship on course and

made

sense of a cluttered sea of papers, faxes,

IV

and

reports.

Preface The purpose

book

of this

you help yourself in

to help

is

the process of

deciding whether to accept and then prepare for an overseas assignment.

My method is primarily Socratic.

I

will not provide

many

sources or answers (because they change, get out of date, and are not the

same

for everyone). Rather,

I

want

to help

you ask the

yourself for this assignment by having

you didn't know them

case

to

begin with.

I

hope

some

of the questions to ask yourself before

there,

and before you come home;

I

want

you

to help

information and take appropriate actions; and

how It is

to

you prepare and educate

I

to

right questions-in

make you aware

go, while

you

of

are

you gather

plan to

comment on

hold on to some of the funds earned during your posting.

difficult to

the subject, yet

ask the right questions

knowledge

successful outcome.

is

if

you don't know much about

invaluable to a wise decision and a

Forewarned

is

forearmed.

Many individuals have

personal- and career-enriching experiences overseas, while others

would

rather forget the

companies do much

work abroad, while

to

bad times abroad. Some multinational enhance and support

others

their

employees

do no more than provide

who

a ticket for the

expat and family. The costs of a failed assignment can be very high in

terms of career, finances, and personal

life,

so careful thought before

accepting an international assignment followed by thorough

preparation before you go are clearly worth the time and effort involved. This In this book,

book

I'll

give

is

decisions to make.

Success overseas

is

intended to guide you through

you

a

list

this process.

of things to do, questions to ask,

What you do with

this resource is

often the luck of the

up

and

to you.

draw-sometimes these

assignments are smooth and sometimes they are hair-raising. Your particular job abroad could be extremely

may

find yourself in an office cross fire

smooth or conversely, you

and severe down

draft

wondering how everything went wrong and how you found yourself Preface

v

in this predicament.

Having made overseas

have seen Americans of

all

trips for

and predicaments. However varied the

way

in providing

and

cultures, languages,

ingredient in

A positive

smooth

many

I

types-tourists, business executives,

students, those in the professions, lost souls-in

has remained consistent:

many years,

sailing

on

faces,

attitude

all

though, one observ^ation

and

a journey

countries. Flexibilit}'

kinds of situations

adaptabilit}^

go

a long

through different

seems

to

be an important

success stories. Change, along with the

unexpected, will probably be part of the foreign tour no matter

how

well-prepared \'0u are for the journe\'. I

have spent considerable time

in

one-on-one intervie^vs and data

collection in order to write this publication

those

who

name without of

like to

thank

It

would be impossible

to trv to

thank ever\'one by

the fear of not mentioning an important contributor. To

you (vou know who vou

are),

manv

thanks.

A note on the use of gender-specific terms is also in order before begin. In this text

I

sometimes

family." This use of

gender

is

refer to the expatriate as "he"

I

and

clearly stated here that the expatriate can be of either

can the spouse or partner.

"his

entirely a matter of writing style, as

referring to "he or she" throughout tends to read awkwardly. Let

VI

all

took time to share their experiences, thoughts, and

recommendations.

all

and \vould

it

gender and so

be

A Personal Note from THE Author

have had some interesting experiences in

I the many years that but

I

when I

first

have traveled abroad,

many more

could have had

started

I

if I

had

had the opportunity. Many can say that I've

thousands of miles

later, I

enjoyed the

ride.

has not been without

bumps, but

overall

Each If

trip

It

has been quite rewarding.

it

brings with

you have

its

it

a chance to

a learning experience.

work abroad,

it

may be

a very enriching experience. I

first

became

interested in travel from the

postcards and letters

when he was

a

my father sent home

Gl during WWII. His eight-day

journey to Europe from the States was by boat. I

always think of his voyage

to

Europe when

I'm on the plane which takes hours, not days.

My experiences have been business-related whereas his were quite

different.

from home gives much thought

and loved ones. The following correspondence that accident.

It is

in

to his

home

is

happened upon quite by

a letter written

from somewhere the States,

I

Any GI away

England

by

a

US soldier

to his

son back in

two weeks before the Normandy

invasion. His thoughts

upon returning home,

were obviously focused

safe

and sound, and

whether he would ever see his family again.

A Personal Note from the Author

vii

A Personal

Somewhere

Note from THE Author

May 21,

England

in

1944

Dear Son, I

received your letter of April 24 yesterday

and

Continued very glad the

to

get

I see

it.

ground getting

it

where you

many previous

around there soon the

if

to

this

bet the

I'll

year as they have

ones. I imagine those

towns

towns pretty

will really be ghost

By

things go on as they have been lately.

sound of those

have

are out in

ready for spring.

blossoms are really pretty been

all

colds, son, I think

have those tonsils out.

I

you

will just

understand you

had a most enjoyable Easter and the old Easter

bunny

did alright by you. You will have to get

some new snap

me

shots of yourself and send them to

'cause the only one I have with

you had taken

me

is

You don't want

last fall.

the one to forget

that now.

So Uncle

is still

in the

mountains eh! He'll be

coming out pretty soon now way. At

least,

he will have

that

to

summer

get out

is

on

and get

some sunshine. Regardless what develops

there

only one place that

home-

would be where life.

I still

I

1

can or could ever

spent

think there

my

is

call

care of

a lot offoolishness going

Mom and keep her spirits

pitching and

I

should thank

God

hope

to see

that

is

twenty odd years of

on somewhere, somehow. You continue taking

you

all

up.

Love,

Daddy

Keep

soon.

you are living

United States.

vm

its

You

in the

The

letter

was written

me by my father. He did

to

return safely after walking into France at

Normandy and on to the Rhine River in Germany. He was never the happy-go-lucky young man

had thousands to

war changed him

as before-the of other

in

one of the greatest

countries in the world. His landing site

took him near the French town of Caen. ironic that less than 50 years later

home of British Major Fred

house

sits

it

men and women. Thanks

them I enjoy our freedom

the

as

I

on D-day

How

would

Tinsley,

within a few miles of where

stay at

whose

my father

My stay in Normandy was quiet

walked ashore.

and peaceful-made possible by those

fathers

who

Much of today's international travel and business has been made

were there

also;

some

still.

safe because of them.

Dealing with Because

I

jet lag

travel to

people ask

Europe quite

often,

many

me whether I have a special routine to

handle jet lag on

my various travels.

Everyone

has a different approach, but the following works for

me on

Day The

trips to

Europe:

of travel

last

meal

to eat is

lunch

(light).

Most planes

leave for Europe from the East Coast between

PM, which

6:00

and

2:30

AM European time.

8:30

is

between midnight and

While on the plane,

bring along cereal and raisins.

I

I

never eat the

food served on the plane but do drink water and juice.

I

try to arrive

on an

early flight getting into

the European city before 8:00

AM.

This usually

allows enough time to clear customs and be in a hotel

by

10:00

nap and

am

A Personal Note from the Author

ix

AM.

I

take a two-hour

A Personal -r

iN OTE

l^

FROM

^^^^V ^^r a luncheon meeting around 12:30 or

PM. This usually

1:00

^^^^^

j

^^ ^^^^

me until 5:00 PM,

^^ ^^^ ^^^^^ ^^^ ^ half-hour

THE Author

after

Continued

7:00

PM. Then back

and

to bed.

which

lasts

am ready for a dinner meeting at

I

to the hotel

The next day

start

I

by

10:00

PM

out at 9:00

AM

AM back home) and am on

(3:00 or 4:00

Coming back home

schedule.

nap

(going west)

usually creates no problem or special planning.

Of

what works

course,

for

me may or may not

work for you.

What

not

do

to

A most embarrassing trip that ITl never forget was to Amsterdam It was one of my first trips abroad and

made

I

all

the mistakes-ate

everything that was offered on the all-night flight

over and slept very

little.

The meeting

location involved driving another after landing.

I

showed up

promptly invited out

Around With

3:00

little

amounts

host. little

sleep,

fell

at 12:00

noon

to

be

to a big luncheon.

PM the business meeting started. having consumed large

of food,

promptly

two hours

and a warm meeting room,

asleep directly in front of

He was most gracious, nap, after which

(ending successfully,

I

I

letting

I

my

me have a

continued our meeting

may

add).

My host was very interesting, sharing some of the local history.

He remembers being seven

years old standing on the street holding his father's

into

hand when

the black boots

marched

Amsterdam. Even these many years

he remembered and described

it

vividly.

later,

Chapter Introduction: Part One: li inking

About It

Is

This The

Opportunity Of A Lifetime

A

wonderful opportunity can be yours.

The chance

to live

and work overseas

is

often

What better way

to

see the world than getting paid for doing

it?

the chance of a lifetime.

Living and working offshore can be an enriching experience for both the employed partner and the family members. The

opportunity to expand one's horizons and to experience

new

cultures can offer a

unique scenario.

You

will

among will not will

some

be alone. There

be others

who will

share

of their "learning experiences''

with you, along with a don'ts.

probably be

other expats and

list

of dos

and

Your company wants you

to

succeed-they are making a serious investment in you. They wouldn't he sending you

if you

couldn't do the job.

Companies are sending their best and You should feel proud that you

brightest.

The familiar the great

vs.

unknown.

have been

selected.

As you can imagine, there are many factors to consider in making the decision to go, in making the venture a success for everyone involved, and utilizing the experience to its fullest advantage. This book will help you and your family accomplish this. Even if you're working for yourself and not for a big company, many of the same issues will apply to you. Obviously, any professional

work abroad needs

who has been offered the opportunity to

to consider several issues before a responsible

decision can be reached.

First, is

the overseas assignment in your best

you accept the assignment, is there a competitor or colleague within your company who will step into your position while you're away and "make hay while the sun shines'7 If you accept this assignment, what are your odds of success? (The ratio for not interest? If

completing an overseas tour can be as high as

in 4 in

1

some

foreign

assignments.) Will cultural differences, language, principles or

work

habits serve as opportunities or major obstacles? Chapter 2 of this

book

will help

you think through some

of the career ramifications of

accepting (or declining) the opportunity to

work

abroad.

Chapter 3 discusses the importance of learning the fine cultural communication. Learning to recognize

differences will be critical to your success

need

to learn

on

art of cross-

and adapt

this

to cultural

assignment. You will

about such things as the rudiments of the foreign

language, proper etiquette, correct dress code, appropriate manners,

and how

to

avoid a cultural

country Read as to reside.

much

gaffe. Before

you

go, learn about the host

as possible about the country

where you plan

Learning about a nation's culture, customs, people, and

make your stay more meaningful. Keep abreast as well international news for the latest political developments in the

history will

the

country where you will are

good resources

live. Libraries,

bookstores and tourist bureaus

for this information.

about living in a foreign country

is

of

One

to get

of the best

advice from

ways

to learn

US citizens US

already residing there. Countries with large numbers of expatriates often have an

American Chamber

bicultural organization, or an

American

of

Commerce,

social club that

a

can give you

information on living in that country. In countries with fewer residents,

2

you may be able

U.S. Expatriate

Handbook

to

meet fellow expatriates through

US a local

The consular section of the US embassy or consulate may be able to assist you in finding these organizations.

international club.

The Department

of State publishes

around the world. These are

brief,

background notes on countries factual pamphlets with information

on each country's people, culture, geography, history, government, economy, and political conditions. It also issues travel advisories to alert

US citizens traveling or residing abroad

US passport agencies, major

to potential

The advisories

that could adversely affect them.

problems

are available through

computer reservation systems,

travel agents'

and American embassies and consulates abroad.

airlines,

The family who accepts an international assignment must be in unison with one another if the foreign venture is to be successful. By maintaining harmony, success is more assured at your new home and on the job. All your hopes if

your house

is

for success abroad can

in order. Careful preparation

straightforward communication

international experience.

settle in are

Some spouses

of

happy

your family

important keys to a

experience difficulty and

frustration in adapting to a strange country, especially

leave a job where they were

true, especially

and open,

among all members

both before you leave and after you

good

come

if

they had to

to follow their partner. Children,

too, can balk at being uprooted from their school and friends. You will

need

to consider

adjust to their

such questions

as:

How long will it take them to

new surroundings? Can they be

American school?

If

enrolled in an

the children are in high school, will the credits

they earn in a school abroad be acceptable for college admission in the

US? Chapter 4

is

designed to help you and your family make the right

decisions about going and help accept.

It

will also offer

you prepare

for

your adventure

some suggestions about making

if

you

the best of

your adventure in a foreign land. Thinking about the well-being of yourself and your family will no

doubt lead you quickly proposed country. Does the hospital

to questions this

and medical

about health issues in the

country pose significant health risks? Will

facilities

there provide the quality of care to

which you are accustomed? Will you and your family be fully covered by insurance while abroad? Look to Chapter 5 for more about these

and other health concerns.

Introduction

3

The US Department of State can be of great help to you both before you leave by providing useful information about your host country and while you are living there. US consulates and embassies offer a wide range of services to US citizens living abroad, especially in the event of emergency. Chapter 6 outlines you, as well as providing issues

you should

only from the

of these services for

other useful advice about legal

consider. Don't limit yourself to seeking help

US consul. You

the consulates of other British

some

many

can also find valuable advice from

governments as

Commonwealth

well. For example, in the

countries, the British consular services

may

you the best advice on your host country. Similarly, in an African country that was once a French colony, you might turn the French embassy there. offer

You

will also

want

what impact this assignment First, can you afford to accept

to look carefully at

may have on your personal finances. this

to

assignment? Will your standard of living be affected?

much of an increase

in salary will

be necessary in order

How

to take the

plunge? Will the additional allowances that are designated for housing, the children's education, auto, and other cost of living

What kind of compensation package will your company provide? What about the options regarding your home in the US? Should you sell your home or rent it out? Or should you keep your home and have it maintained but empty? expenses be sufficient?

Regarding your benefits package, will you be covered by Social Security as well as a pension plan? Chapter 7 discusses the

aspects of the compensation package that

many

you should consider when

discussing this assignment with your company.

Chapter 8 provides some information about taxation by both the

and your host country. While gathering information, you to

begin asking such questions

that country? Is there

as:

Will

an income tax

you need

to

will

want

pay income

treaty that exists

US

tax to

between the US

and the other country?

Who will provide advice and prepare your

tax returns for both the

US and

the host country? Will

responsible for paying for this kind of tax expertise? interest to find out beforehand.

4

U.S. Expatriate

Handbook

you be

It is

in

your best

If

you have never traveled

given

little

thought to

markets can

how

to a foreign

the goings-on in international

your everyday

affect

life.

Suddenly you may find yourself quite price of tea in China! will

soon learn

currencies

to

you

Even

pay

will

to

may have money

country before, you

This will certainly change. literally

concerned about the

manage your day-to-day

expenses, you

close attention to the relative values of the

be working with. Even before you accept the

assignment understanding currency values will be useful, as you will

want

to

know

What currency

the answers to such questions as:

will

If you are paid in foreign currency, is it a volatile or compared to the US dollar? What is its value relative to the US dollar? Answers to these questions may well affect your upfront negotiations with your company, and your financial planning for

you be paid

in?

stable currency

your

life

affect the

abroad. Chapter 9 offers a brief discussion of the factors that

value of world currencies and looks at

fluctuations in currency values can

affect

how

global

your personal finances.

To manage your finances while abroad, you will also have

bank

to

home and abroad. As an expat, you may well yourself with more money to invest, and with more options

available to

you

certainly

at

in terms of financial advisors, investment planners,

and offshore banking

services.

an advantage,

some advice As

choose a

handle your financial transactions and possibly help you with

your investments both find

to

to help

it

Although the abundance of options

is

can also be very confusing. Chapter 10 offers

you navigate these waters.

the last part of the financial information offered here, Chapter 11

provides information and questions to consider regarding your insurance coverage and estate planning.

It

will

walk you through such

Have you reviewed your insurance coverage? Will there be any problems if you file a claim outside of the US? Are there

considerations

any

as:

restrictions in

your health,

casualty coverage?

If

life,

disability

income or property/

company group Has your estate plan been

there are gaps, will your

benefits provide the additional coverage?

reviewed? Should you consider having a foreign will for foreign assets? This

country.

is

especially important

if

you own

real estate in

your host

A lawyer and an accountant with expertise in both domiciles

are highly

recommended.

Introduction

5

There

one aspect of living

is

abroad that expats often consider until

and

that

is

experience.

it is

fail to

upon them,

Travelogue

the "re-entry"

Not uncommonly,

expats and their families

can be

Paris

home

discover that coming back

The City of Lights

at least as difficult as

moving

to foreign soil.

However, forewarned

1

is

forearmed, and Chapter 12

arts

is

to do, so

some advice about how avoid some of this "reverse

offers

such a big place, so

many places

to

much

go and

I

usually go to the same

hotel

little

culture shock."

in the

The last two chapters of the book are offered to you as tools

16th district near a wonderful

same neighborhood

pastry shop. to

It's

in the

near the large

be used in preparing for your

new

adventure. This book

is

designed to be a launching platform for you, and is

see.

to

Socratic.

start

you

its

is

on the

by leading you

right road

old.

WJien Marie Antoinette was going to the guillotine, the

French

Revolution starting,

this tree

to the questions

you may not have thought of and encourage you to do your

homework

very special-over 200 years

mode

My objective is to

off

public park which has one tree that

in the areas of

young

sapling.

Now

it

was a

covers at

least one-half acre in full bloom.

particular importance to you.

There are many,

many

useful

resources in print and on the

Kids, families, animals, old people,

young people converge

Internet to help you. Chapter 13 a

offers a brief

list

of

these resources, to started.

you

some of get you

No doubt they will

snow cone

stand, just like back

lead

in English.

A nice Bistro in

the

to others.

of course, don't forget that

often the

most valuable

resources are people you can

6

There's

home, only the conversations aren't

16th

And

here.

U.S. Expatriate

Handbook

is

La

Stella

on Victor Hugo,

talk to. Search

them

out,

and

don't be afraid of looking

stupid-ask questions! As an

when I

example, city,

arrive in a

or even in a city

familiar,

I

Fm

find local business

men for business and

where

new

information

to get advice. Their

experience and knowledge of

many The

locals,

best

many

not as

months

tourists.

to visit for

me are

''their

tourists,

October-no weather

kids,

nice.

is

no

the people in

have been of great benefit If

May and

town and

they don't know, they

who

to

it"

me.

know

does know. Veteran expats,

be they fellow employees of

Another

your company or club members, favorite pastry shop

is

Angelina at or neighbors, are also

the

Concorde Lafayette.

I've learned

Paris with the help offriends. The

exceptionally useful sources of

information, advice, and

empathy. Some of the websites Metro (subway)

is

easy to learn. The

Parisians are wonderful people

if you

exchange information,

get to

know

style,

and manners are important

them. The French class,

questions,

them and not practiced by

to

many of

but they will notice

if you try.

and experiences with

expats from around the world.

And

don't forget the nearest

consulate. us,

rooms and you can

listed here offer chat

bulletin boards so

Remember

however rough

it

US

that

gets,

you

are

not alone.

Chapter

14, finally, consists of a

you can when you

timetable and checklist

use to ensure that

have

you you

to leave to catch that plane,

will

do so confident

are as ready as

that

you can be

for the experience of a lifetime.

Introduction

7

Every publication snapshot in time,

is

a

and such

is

the case with this one. Times

Travelogue

change, businesses evolve,

and so

v^ill

the subjects

and

information discussed in this

book. this

London

My way of continuing

dialogue and providing

an updating of information

The Financial Capital of Europe

is

through our newsletter Global Assignment,

/\gain, so much they speak the

to

do and see and

same language.

Americans Abroad, published 9 times a year. is

also

on

The newsletter

(However, the Queen's English

is

not to he confused with American

line at

.

English.) The people are wonderful. I've been

going

to the

same

hotel for

years in the West End. The location is

close to the airport transport-

ation, tube station, British Rail,

Eurostar, shopping, theater, restaurants, is

and business. London

a good launching point for

anyone going into

the

European

Community-whether taking a working assignment or going on a vacation.

The British

moving people. For humanity little

that

specialize in

all the

moves through

country, the Brits do an

excellent job of keeping

it all

sorted

out. Final bit of advice: don't

your British friend day. "

It's

U.S. Expatriate

Handbook

to

"Have

tell

a nice

not part of their

pleasantries as

8

this

it is

a part of ours.

2 Pari One:

Career Considerations

Tltinking

About It

Is THIS

A GOOD CAREER

MOVE?

u

pen being

no doubt your

offered a foreign assignment,

thoughts concern

first

how

accepting or declining this offer will affect

your in

career.

making

There are

many

factors to consider

this assessment. Is the position

company as a move up the corporate

perceived in the vertical

ladder or a horizontal one? is

If it

horizontal, will the time

you

spend out of the country (and out of the competitive race in the

home

office)

lose competitive

cause you to

advantage

future promotion?

If

in a highly technical

will

for

you work field and

be abroad for a significant

period of time, will you be able to stay current in

your

technical area of expertise or Will your career

might you

fall

behind? Will

company

be enhanced or reduced

hurt your future in the

while you are out of the

assignment? Perhaps you do not foresee a

boss's eye?

long-term future with

this

it

to refuse this

company.

international assignment or not. In that case, will accepting this

assignment enhance your career elsewhere

after it's over?

Discussing

these questions with a trusted co-worker or mentor with long-term

experience in your

company can be very helpful.

extremely valuable to talk to employees

with your companv.

If

you

are replacing

who

would

It

also be

have expat experience

someone

else abroad,

speaking to that person might prove highly valuable.

Will you Clearly,

be successful?

whether undertaking

a foreign

good career move or not depends

warned

to a large

vou

are once there. Be

It is

estimated that 20 to 25 percent of

ultimately

assigmnent"

much

According

fail.

is

defined

sooner than

degree on

all

foreign assignments

experts, a ''failed foreign

An employee who returns to the US anticipated; and /or 2) An expatriate who

as: 1)

initially

failed to

meet the goals and objectives of the company.

number

of

companies

how successful

that not all assignments are successful.

most

to

assignment turns out to be a

will select

an employee

for

A considerable

an international

assignment based solely on the employee's career development, with the idea that the next logical step in that employee's career

is

going

abroad. However, that doesn't necessarily guarantee that the

employee

is

going to succeed in a foreign culture. Consider the

following percentages, provided by the Business Council for International Understanding, of expatriates

who

return to the

US

prematurely from a foreign assignment: London 18 percent, Brussels 27 percent, Tokyo 36 percent, and Saudi Arabia 68 percent.

Why do a substantial percentage of US professionals fail to succeed in their overseas

assignments?

Is

there a pattern of circumstances that

inevitably contribute to this failure? of these failures

vocational

were not linked

skills,

Some surveys

indicate that

to deficiencies in technical

If I

were

to present a best-case scenario for

choosing the right person for the right job overseas,

I

would look

technical or managerial expertise to other important factors

such as education, family expectations, and motivations.

10

and

but rather were the direct result of cultural or family-

related difficulties.

beyond

many

U.S. Expatriate

Handbook

you have been offered this assignment, no doubt you have been perceived by your company as highly proficient at your job. However, it is in your best interest to consider the possibility that although you are successful in the States, you may not have the personality, If

motivation, or family situation that will be likely to spell success for

you abroad. To send you abroad, your company will incur costs up to three times your base salary. Choosing to accept the offered assignment and then failing at it will certainly cost your career more than would deferring the assignment to someone else. Thus, it is very important to your future that beyond deciding whether accepting this assignment of

is

a

good career move, you

make

also

a careful assessment

your personality, personal motivations, and family circumstances

determine whether you are likely to be a successful expat. that

you be

strictly

honest with yourself in

vital

this process.

Consider whether you possess such personality adaptability to change, self-reliance,

It is

to

traits as flexibility,

and resourcefulness

in the face of

emergency. Consider, too, your ability to learn foreign languages and to adjust

your communication

style to

new

conditions.

Are you

comfortable in strange surroundings? Consider, too, your motivations for accepting the position.

working

How much does the prospect of living and

in a strange culture appeal to

you?

It

mistake to accept the assignment only for the

advancement-if the adventure frustrations

and

future gain.

If

itself is

are married,

it is

money

If

or possible career

outweigh extra money or

critical that

partner in the decision. Without your partner's venture, success will be elusive.

a

not appealing to you, then the

difficulties are likely to far

you

would probably be

you have

you include your full

support in

this

children, obviously their

needs must also be considered (see the chapter on Family Matters for

more about family

issues).

Career Considerations

11

Will the company provide the support you need for success? As you consider

move, be sure

this

to look carefully at the

support you

can expect to receive from your company while abroad. Your success or failure

on the assignment will depend

well your

company prepares and supports you while

mistake that living in a foreign country

more help you

to a

is

abroad.

challenging at best, and the

from your company, the better

get

how Make no

very large extent on

will

be your

company employees who have already gone abroad with your company and ask them how supportive the company was for them. Obviously, a significant portion of the support you will receive from your company will be covered in the compensation package you negotiate. Many of these considerations experience. Talk to

are covered in Chapter

company support •

However, there are certainly other aspects of

7.

to assess.

Consider some of the following issues:

How many employees does your company support abroad? How long has the company been taking care of employees overseas? A company with

number of employees abroad, especially if it has had some years to develop a time-tested support structure, is apt to offer you the best support. •

a significant

How much help will you get from your company in preparing for your

in a foreign culture? Will

life

you be

offered cultural

language classes or other forms of preparation for your

new

location? Will

it

find housing

help you

sell

decide to do that? Will the taxation

What is

and other

the

in

your new

in the States

assist

you

in dealing

in the

to its international

home

office

overseas office

U.S. Expatriate

with

agenda?

tuned in

like

to

yours part of a well-planned global

The more important the company considers

to the

should you

How many of them have had expat experience?

operations, the

12

in the

financial issues in the host country?

Are expat assignments

be

your house

company's commitment

global issues?

strategy?

and schools

company

Are managers and executives

will

life

country? Will your spouse be able to attend as well? Will the

company help you

•

and / or

its

overseas

more resources it will be willing to devote to your (and you), and the more important your work

company.

Handbook

• Is

the assignment

foster success?

you

are being offered structured in a

Are your objectives and

way to

responsibilities clearly

defined as well as the performance criteria by which you will be

evaluated?

Is

there a clear chain of

command, and

well-

established reporting protocol? For communications back to the

home

you have

example, phone,

(for •

office, will

fax,

the use of state-of-the-art technology

modem,

Internet, video conferencing)?

How well does the company reintegrate returning expats? Does it do

a

good job

of taking advantage of their

newly acquired

skills

and experience when they return?

Will

it

be difficult for

a woman to

succeed overseas? Given the

fact that

women in business often face obstacles due to

gender, and the fact that this situation cultures,

is

often even greater in other

perhaps additional attention needs

to

be paid to the special

women considering foreign assignments. While interviewing women working in the international job market, concerns of

received the interesting response, "You're not a

you understand

my

problem?'' This

serves as the basis for this section. the workplace, the

same

issues as

chapter.

more they

men.

I

is

woman.

I

often

How would

a very good question and

The more time spent by

find that they aren't unique

women in

and

face the

am not referring to women pioneers in this

Women pioneers,

those going into a

company

or country for

woman before, face I am focusing here on the woman who is not the first one in, but following those who have

the

first

time where there has been no

circumstances different from those that follow.

cleared the way.

The country where you are going has its culture in place and has had for many years. The manner in which women are treated is part of that culture.

You

will not

change

posting a successful one. Your

it

and must adapt

company should not

assignment where your chances of success are more you're a woman-unless you

is

it

to

place

make your

you

difficult

know beforehand and go

eyes open. The question you should ask yourself

even chance

to

in

in

an

because

with your

"Do I have an

for success?"

Career Considerations 13

Do your homework and

assignment. Consider the culture of the country' and

this

of

determine the potential obstacles,

women;

company and

the culture of the

promotion of women;

its

problems regarding your children adapting,

women who've been more

it's

difficult to

categon' as international employees. to

duck

like a

it

bodes well

\vomen working

for

recently read an article giving

when working

seen

assignment than into a single

individual-some will take

water and others will experience nothing short of

The adage "one woman's

disaster

I

to

trailing partner;

lump women

It is all

acceptance

etc. Interestingly, I've

successful in a foreign

they were "back home." So,

its

any, of

acceptance and

problems of the

role reversal

if

tea

another woman's poison"

is

offshore.

women

advice on

how

be successful

to

abroad. Ironically the publication covered points that

men who want to be successful. An was done by a woman in California 15 years ago regarding the ways and styles in which women handle contlict. She obser\'ed the different ways women approach combat as compared to men. Boys were found to be more physical and direct in should also be considered by

interesting piece of research

settling their differences

from an early age through the teen-age years,

same age bracket were less maneuvering, and less confrontational. Would

whereas

girls in the

today with activit)' ?

women participating

in just

the study be the

life

and business. The

abilities that

to later

got you

up

corporate ladder this far will probably be those that also overseas.

Common sense

same

about ever}' physical sport and

These habits, early learned, follow through

behavior in

more

physical,

and adaptability are good

years and

the

carr\'

you

characteristics for

success wherever you are.

Men

from other countries often get

their ideas

watching American T\^ and movies. find

it

strange that

women

about

Many men in

are business executives.

differences in attitudes about sexual harassment, a

compliment

this

happens

countries

weigh

you consider

major concern

homework and

common sense 14

some

to you,

culture before Safet\' is a

in

all it

for

if

a

U.S. Expatriate

foreign countries

Regarding cultural

it is

often considered

woman.

a pass at a

an

If

insult.

women

ever^-^vhere. Again,

company on how

woman wouldn't travel alone on

Handbook

from

the facts along with the countr\-'s

get input from your that a

man makes

women

to

do your

be

the

safe.

It's

subway

in

New York,

the

Tube

in

London, or the Metro

in Paris

late in the evening.

Travelogue

As mentioned

earlier, the

problems that separate

and

Heidelberg

men

women in business and

become more narrow at home and abroad as women make their impact on today's culture

1

his universih/

drive on the

town

Autobahn

was taken pointed

a one

A5 south

on the

hill.

there by a friend

down

to the river

of the bridges.

hour of

A good place

the Frankfurt airport. to visit is the castle

is

I

business.

pipeline (education,

government, and business)

and

who

Women are in the

are here to stay.

near one

He said his father

escaped the Gestapo during the

war

by going into the river near the bridge,

swimming

and

to safety

working with the French

Underground during

the war.

Also, near the river

the "poet's

is

walk" a path used by scholars for contemplation. college

was

My employer in

a student at the

University of Heidelberg and barely escaped before the start of

WWII.

My friend shared a story

about his mother. The mother was a survivor

o/VVW7/ and for years

following the war hoarded bars of soap.

During

the

war

there

none and she wasn 't going

was

to be

without ever again.

Career Considerations 15

16

U.S. Expatriate

Handbook

apter

3

Cross-cultural

Part izvo:

Communication

Working and Living Abroad

A

s

I

have pointed out before, the success

or failure of your overseas assignment likely to

depend

as

is

not

much upon your

technical

upon your

ability to

or managerial abilities as

function well in a foreign culture. The

importance of understanding a

and tuning

new

into the subtleties of

its

culture

modes

of

communication cannot be overstressed. Consider the story of an American executive

who was

designated

to deliver a

formal

presentation at a

Japanese conference.

During her presentation, the

woman became acutely aware of a

man

in the

audience

who

proceeded

make

to

strange

faces at her. Following the conclusion of her Expect your diet

to

presentation, the

woman voiced

her

change somewhat.

17

disapproval to the Japanese hosts.

And

while an apology was

was discovered that the man in the audience offend the American speaker. He simply became

immediately provided,

it

had not intended to so fixated on her facial gestures that he inadvertently began imitating her. Should this story be considered an isolated incident of a simple misunderstanding or

is this

prime example of everyday

a

miscommunication between cultures? Many experts would support the second conclusion.

Most

of the problems caused

result of the failure

by

by some or

cross-cultural clashes are usually the

all

parties involved to recognize

account for differences in culturally-based communication

assume

that

all

and

styles.

They

peoples communicate using the same set of modes and

body language styles, are unconsciously held). For example, numerous professionals from the US make the mistake of assuming that all people want to be spoken to informally, just as they assume that simple body gestures strike the same chord in rules

any

(many

of which, like

culture, or the notion that

an openly frank

style of negotiating is

most appreciated.

We should first realize that there is no such thing as a universal form of communication. Take the simple gesture of a smile.

unusual for Americans

to

It is

not

exchange smiles with complete strangers.

We smile at people on the street, at the airport, in restaurants, shopping malls and so on. We consider it a friendly gesture. However, in other cultures a smile can take on a completely meaning.

A smile can be considered insulting or

embarrassment.

Many Americans fail

it

different

can signal

to realize that

common gestures

such as shrugging one's shoulders or scratching one's forehead can be completely misinterpreted by someone from another country.

Each culture has

its

own rules

of communication.

A French executive

would probably be offended if a new acquaintance were to address him by his first name. Giving the "thumbs up" signal in Australia is impolite.

And

a display of frankness so

common

to

Americans

perpetuates the Japanese impression that the American people exhibit a lack of discipline.

Even though such

cultural collisions often elicit

negative feedback, they rarely provoke extreme

18

U.S. Expatriate

Handbook

hostility. Instead,

committing

a cultural taboo

usually regarded as improper,

is

discourteous, or disrespectful. The individual of committing the taboo tlat-out silence,

which

is

who

has the misfortune

"rewarded" with expressions of anger or

in turn can

communication almost always

be misinterpreted. Such mishaps in

ser\ e to

diminish one's

credibility.

Usually, cross-cultural gaffes stem from misjudging situations that

involve mingling and communicating with others. These include: the

manner

dress code for appointments, the

in

which we introduce

ourselves and greet others, expressing thanks to the hosts as well as

proper etiquette for the presentation of

Americans consider such events

to

be

that the interpretation of these social countr}- to countr\-.

\vhat

is

and what

If

we

fail to

gifts.

While the majority of

ver}^ routine, the fact

commitments

remains

varies from

educate ourselves in advance as to

isn't acceptable,

then

we prime ourselves

unintentional embarrassment, possibly at the worst given

for

moment.

Miscalculating the pertinence of cross-cultural communications can be

counter-productive at best, or abysmal at w^orst. Cultural differences

with regard to eve contact,

when

it is

acceptable to smile, and

protocol for addressing foreign counterparts are

dramatically impact

all

all

qualities that

angles of negotiation and interpersonal

communication. For example, the word "no"

is

a response that the

Japanese tend to a\'oid altogether. As strange as

it

may

are not optimistic about a given proposal, rather than

many words,

they

may

choose to

make

avoid eye contact with you, or they Their answer

is

name

for all practical

seem,

tell

you

if

a counter inquir\; they

may

simply choose

purposes spelled out

to

may

walk away.

in their behavior.

Obviously, this can be very frustrating to American negotiators are used to a straight forward "yes" or "no."

accepting cultural differences in

is critical if

they

in so

who

Understanding and

one expects

to

be successful

an overseas assignment.

CROSS-CULTLR.AL CONLXfUXICATION

19

UpClose Americans in Europe -

An Interview

I ohn Mole

is

a consultant

Europe. His book

Mind Your Manners

international best

seller.

same bank years

with John

and author on working

effectively in the different business cultures of

back.

John and

He has

I

is

an

worked for

the

kindly shared some

of his experiences in the following interview.

Mole Q: You

write about cultural differences in

Europe.

How important is cultural awareness

for

Americans working in Europe?

A: Bain

& Co., the international consultants,

recently did a survey of unsuccessful cross-

border mergers and alliances. They found that cultural difference

was

a significant

contributor to failure along with poor

planning and conflicts over control. However,

sometimes cultural problems get the blame for deficiencies in the purely business aspects

of a relationship.

No amount of cultural

sensitivity will disguise a

bad plan or

You have to get the targets and the structure

conflicting objectives.

strategy

and the

right for

any collaboration

once you have done

that,

to succeed.

But

how are you going

make it work? How are you going to get the people to work together? That's culture. to

20

Q: Don't we have anything

in

common?

A: Europeans and Americans share very similar goals-to deliver growth and profit to their shareholders and benefit to their customers, employees, and their community. But we have very different ways to achieve those goals. Our values and beliefs and behaviors in the workplace and the marketplace often appear misguided or bizarre even to close neighbors in Europe. But they affect everything we do from the smallest daily habit

to

major life-changing decisions.

Q: For example? A: The differences start with language. The 15 countries of the European Union share 11 official languages. In addition to these there are over 50 minority languages, such as Catalan and Flemish. Fifty

EU speak one of these minority languages as their first language. And with each of those languages goes a distinct cultural package. No one expects American businesspeople to speak

million people in the

any of these languages except English but do expect them sensitive to different

Q:

ways

of thought

to

be

and behavior.

work

Surely you don't have to speak several languages to

in

Europe? The British and French don't.

A: Native English speakers, including Americans, fortunate that English

is

they should realize that

are entitled to feel

the language of international business. But it is

a

mixed

blessing.

international English, or Offshore English as

Why?

it is

Because

sometimes

not the same language that native speakers use at home. said that the language of international business

is

and Diplomacy-BAD English.

Business, Airlines,

It

called, is

has been

the English of It

has a standard

pronunciation, a small vocabulary, and none of the slang and jargon

and colloquialisms

that enliven native English. Phrases such as

"What's the bottom line?" "This will raise the stakes," or

above board?"

may mystify your foreign partners. And

people admit to British

that they don't

have the same problem.

German a

is

I

understand what

know

is

"Is

it all

the last thing

being said. The

of a situation in

which

a

company were competing software company and contract with a Finnish customer. The Finns chose the Germans a British

because they understood their English

for

better.

Cross-cultural Communication 21

Q: Sometimes Americans have

And A:

a

problem understanding the

British.

vice versa.

Right.

remember when I was hired by an American bank

I

I

received a letter from the head of the International Department saying,

"Dear John,

am

quite pleased that you have elected to join the bank." up and stayed in Europe. Because "quite" in English means "somewhat" or "not very." It is probably the single word that gives most problems between Brits and Americans. Another classic is "table" as in "I think you should table that idea." In American it means leave it off the agenda. In British it means put it on the agenda. I

I

almost tore

But

it's

it

way you use language differs from Southern Europeans have a much more oral

not only the words. The

country to country.

culture than Northern Europeans to act

and Americans. They

are prepared

on the spoken word and ignore written communication. Their

"What does

"Why is

mean?" but it being written down?" Northern Europeans put more

reliance

on written communication. They don't take anything seriously

first

reaction to a fax or a letter

unless

it is

is

communicated or confirmed

negotiations, presentations, even

always advise people fax. It

saves time and

Q: Any

not

this

in writing. This affects

how you use the phone and

e-mail.

when they phone and phone when money in the long run.

to fax

I

they

other tips on communication?

A: Humor is a mine field. Americans are famous for the irrelevant and so often unfunny joke that kicks off a speech or presentation. In Britain and Ireland a sense of humor is part of the job description. It

is

many European countries humor is taboo in a formal business context. To make a joke at a meeting, even if it is meant to calm things down or soften a criticism, may be viewed as trivial, offensive, or just plain stupid. And this is if the joke is understood. Humor travels very badly. the lubricant of everyday interaction. Yet in

Communication dress,

is

not only about language.

It is

body language,

manners, attitudes, and conventions of behavior. Imagine you

are at a meeting with

lunchtime.

If

Dutch or Danish associates and

you break

off

and go

to a

good

it

gets to be

restaurant, they will

think you are not serious about the business. They prefer a sandwich

22 U.S. Expatriate Handbook

you are meeting with French or Spanish and you offer them a sandwich instead of going to a restaurant, they will think you're not serious. They go out to a good and

a glass of mineral water.

If

restaurant instead.

Q: Does

this

mean Mediterraneans

are

more

self-indulgent than

puritanical northerners?

A: Certainly it is true that Mediterraneans attach more importance to good food and drink than northern Europeans and Americans. It is an important part of everyday

life.

But a deeper reason

to cultivate the personal relationships that are so

is

that they

need

much more

important in a business relationship than in the north. They want

to

know what sort of person you are and whether they can do business with you before talking about it. In many countries you simply cannot do business While

until

you have

this is less a factor in

first

achieved a positive personal rapport.

Northern Europe,

it still

takes far longer to

Americans should

get onto a business footing than in America.

understand that in most European cultures they cannot walk into the office of a

complete stranger, exchange business cards, and

immediately

having

start a sales pitch.

to learn to

And

likewise Southern Europeans are

be effective in the more impersonal, systematic, and

analytic cultures of the north.

Q: So

the tip

is

to relax

on

that first meeting.

A: Certainly don't have too high expectations. But it's not simply a question of where you have lunch or what you do on the first meeting. Different concepts of personal and business relationships, ethics, customer

loyalty, recruitment procedures, investor relations, corporate

hospitality,

which the

Q:

management

succession, a

whole host of

effective expatriate executive

may have

different things

to deal with.

There's a lot to learn.

A: Many

cultural differences are like foreign

weather or foreign

plumbing. They are different but you get used going

to spoil

working

your business.

I

am

to

them. They are not

interested in the ones that affect

together. Very often they are hidden.

Cross-cultural Communication

23

Q: What

are the important ones?

A: Americans

and arrogant. French and the hip

and

are

managers are autocratic

poor

complain that Americans shoot from

British

listeners.

This

is

different in the three cultures. British

team and

as a

much and

often complain that British managers talk too

are indecisive. British complain that French

their interaction is

because the role of managers

managers are expected

to

is

work

fundamentally collaborative. In

French organizations greater value

is

put on demonstrable individual

competence. American managers have a heightened sense of individual accountability and feel that they must lead from the front.

This boss,

all

derives from different concepts of leadership-what

how you

get

power and

This has an effect at

all levels,

responsibility,

and how you

from the way a

staff

to

how negotiations

Q:

is

a meeting.

Surely a meeting

A: Not

is

a meeting

to

be a

exercise

meeting

how the chief executive operates,

it is

is

it.

run, to

are handled.

The function of the meeting can be radically different from culture to culture. Things which we take for granted-the role of at

all.

the chair, the agenda, the minutes, the need for consensus, time

keeping, follow-up-can be very different in other countries.

Broadly speaking, in Germany a meeting

is

a vehicle for experts to

exchange information. Participants are well prepared and do not expect to be questioned or challenged. For the British and Dutch, a

forum

for interested parties to debate ideas

recommendation and an action

plan.

contribution. In France, a meeting

decisions

is

and come up with

Everyone

It is

expected to

for the boss to

which have been made elsewhere or

information.

is

a

make

announce

to solicit specific

official the

decision that has been

restaurant or the coffee bar and for sorting out the politics

personal relationships that the decision affect

made in

24

affects.

every aspect of business

life,

not just meetings:

And we all think that our way of doing things

U.S. Expatriate

Handbook

the

and the

planning, control, teamwork, communication, recruiting, decision

making.

a

not a forum for debate. For Mediterraneans

meetings are for making

Such differences

it is

is

the right

"

we are to seize opportunities in the changing global marketplace, we have to leam to understand and work with different

way. But

wavs

if

of doing things. Understanding the

difference

is

Q: Which

a vital

is

competence

dynamics of

for business leaders of

cultural

today

the most successful culture?

A: There is no inherently superior business culture. Even- gi'oup or company does what is most effective for itself. The business cultures of Ford, Fiat, and Volkswagen are different but they are more or less equally successful. The problems occur when p>eople from one culture start to work with those of another.

Q: So what's the most important thing for Americans

in

Europe

to

remember?

A: of

I

can't

do

better than to repeat the

IBM for Europe,

the Middle East,

remarks quoted by the chairman

and

Africa.

Ludo

Stanca stated in

The International Herald Tribune:

'Some of my entity

and

colleagues

this is

different entities... .A

that

what

is

make

the mistake of thinking of Europe as

a dramatic mistake. Europe

second very

common

is

one single

an aggregating of very

mistake

is

good and right for America must work

a tendency to assume

in Europe.

Cross-cultural Communication 25

The RIGHT APPROACH Although many professionals and business

entities

appear

to

have

developed a knack for cross-cultural communication, the truth successful

communication

For example,

it is

is

is

that

the result of a well thought-out strategy.

not unusual for international Japanese companies to

require their overseas representatives to spend considerable time in the

designated foreign country before the representative's input or

recommendations are requested by the company's top executives. The light

speed of globalization, as well as the continuing trend toward

cultural diversity, has inspired a

wide variety

of books, videos, audio

tapes and seminars on the "nuts and bolts" of cross-cultural negotiation.

Communication

difficulties

have been discussed

in

numerous publications, such as Beyond Borders. The majority of advice recommends that the expat become familiar with each country and learn what is acceptable and what isn't acceptable in each culture. Professionals with a successful track record of negotiating in a different cultural

environment consistently

the culture they're dealing with.

strive to

It is

understand the etiquette of

in their best interest to avoid

any

preconceived notions of the culture or to be tempted to assume that the foreign country mirrors their homeland. Successful overseas professionals

become

cultural specialists in a sense. For example, they

study the target culture carefully to determine appropriate behavior in a variety of situations.

questions • Is

They look

for clues

by asking such pertinent

as:

the culture rooted in tradition or

is it

liberal

minded? For

example, would bringing an unmarried partner be accepted? •

Does the culture hold the

by •

belief that

virtue of their bloodline or

Does the culture believe

some

individuals are superior

do they accept general equality?

that events are predetermined or

do they

consider events to be determined by individual behavior?

Once some

of these questions are answered, a clearer picture of the

The next step is to consider other cultural influence behavior and attitudes within the country. In

cultural landscape factors that

is visible.

terms of getting a clearer picture of the culture

26

U.S. Expatriate

Handbook

itself,

take a close look

at its historical

A country whose military capabilities

background.

have prevented the occupation by any foreign military forces ultimately has a

much

different perspective

has been invaded. Other factors

on

and

a culture's perspectives

ethnic heritage,

and natural

their perceptions

yourself. Also ''ivory

and

life

than a country that

attitudes include: geography, climate,

resources. Inevitably, these regional

factors often determine not only

partners perceive their

on

that have ultimately made an impact

how your prospective business

own culture, but they

also serve to influence

attitudes in dealing with foreigners, such as

keep in mind that no country can pretend

tower" that

is

isolated

from the

be an

to

social influences of other

may go

cultures,

even though these influences

culture's

own set of values. Remember,

against the grain of the

communication

cross-cultural

invariably flows in both directions. Their interaction with

you

is

likely

to be influenced by what they have been led to believe about the

behavior of American culture, and vice versa.

The successful expat culture's operating in the

US

will take the trouble to

(whether you are conscious of them or

"ground rules" that need

to

be observed, and

overseas assignment. The tricky part culture to culture. Let's consider

need •

determine the

new

code of etiquette for business relationships. Just as

is

some

not), there are certain

this will

be so in your

that these rules vary

of the

from

primary issues that will

to addressed:

How should people of various rank be addressed? When is acceptable to use official

business

first

title?

it

names? Should you address them by Should attention be paid

married names, or clan names?

to birth

their

names,

How should business cards be

exchanged? Are there designated physical greeting gestures?

What about

Are they a necessity?

gifts?

the receiving end? Also,

should •

it

what

gift is

If so,

who

should be on

appropriate, and

when

be presented?

How important is punctuality? a time (and season) that

is

Is

the appointment scheduled at

acceptable?

What should be

the

length of the visit? Should conversation be focused strictly on

business or should involved,

what

is

it

also be social in nature?

If

dining

is

appropriate as far as food and beverages?

Cross-cultural Communication

27

•

What is

acceptable regarding

the pace of negotiations?

What

is

the status of the

individuals with

whom you

are negotiating?

Are

Travelogue

final

decisions actually final? In the end,

is ''no''

Greenwich

an

acceptable answer?

1 met Admiral Sir Richard and •

What about

entertaining?

Lady Fitch through Admiral Paul

Should business be discussed? Should the

(USN Ret.).

Mulloy

setting be at a restaurant "or

and me

invited Paul

They had to

luncheon

at one's private residence? If

entertaining

restaurant,

done

is

who is

respon-

up

sible for picking

at a

the tab?

at the

Royal Naval College,

We were given

Greenwich.

a tour

of the buildings and grounds,

Should alcohol be consumed?

Are there

manners

shown where

specific table

that

need

to

be

•

Drake was

knighted and where Lord Nelson

observed? Are there limitations as to

Sir Francis

was

laid

out-a most memorable

how much was intrigued by

food should be consumed?

afternoon.

How does body language in

Richard's story of how he met

this culture differ

yours?

from

Do people

I

Sir

Admiral Doenitz, leader of the

tend to

German Submarine Command

stand closer or farther apart

from each other conversation?

during

in

When is direct

eye contact appropriate?

How appropriate is

it

It

had gone ashore

seems Sir Richard

at a

German

when serving one of his

tours of

touch another person

duty and was informed that

during conversation? What

Admiral Doenitz was living by.

in

body language need

be respected?

to

How are

gestures or facial expressions

used differently?

U.S. Expatriate

Handbook

port

to

kinds of gender differences

28

WWU.

Would he

like to

close

meet him?

Ideally, expats

command

should have some

of the country's

language and be somewhat familiar with issues involving the

country's political agenda, the state of its

economy

social culture. In

assignment Sir Richard called his superiors for

to

as well as the

terms of the

itself,

the expat needs

adopt a certain

flexibility in

approval of the visit which was

work habits without

granted. Sir Richard knocked on

compromising personal standards of excellence.

the door

and presented himself

Doenitz answered the door and invited Sir Richard inside.

The

human resource

According

to

director of

an East Coast

one

manufacturing company with

employees around the world, one visit

was

initially stiff until both

men found first

met

they coincidentally had

their respective

wives

of the biggest mistakes

professionals

assignments

commit on foreign

is

attempting to

invoke the same approach while abroad. That broke the

ice,

Doenitz broke out a bottle of refreshment, and they had an

towards business that proved to

be successful in the United In any given situation,

interesting conversation.

Two

warriors from different sides, but first of all warriors.

it is

Americans

unrealistic for

States.

to

expect people from other cultures to react in a to

manner comparable

people from the United

Keep

in

mind

that

States.

advance

preparation in cultural

communication does not necessarily guarantee a successful

impression.

And by

the

same

token, committing the occasional

faux pas will not ruin your career.

Some

of the

most "seasoned"

multi-cultural professionals

commit

cultural gaffes

inevitable that

you

and

will too.

it is

Do

Cross-cultural Communication

29

not become overwhelmed by this challenge. The willingness to observ^e carefully

and

humor, are

and

likely to

will get

Does

this

learn,

combined with

you past

mean

jump from one

that

all

which

that exist

it is

cultural extreme to another?

customers want

if

to

why

it is

Starting from this

30

U.S. Expatriate

Handbook

of values

ground,

and

philosophy

if it

there

is

such a thing as a universal

be on the receiving end of a "good

want

in their best interest to agree to a

common

Consider

means negotiating with person you see in the mirror each

to countr\^-even

deal." All customers, regardless of their culture,

spedficallv

necessarily.

to interpret variations in

strange foreign characters, such as the

all

Not

''common denominators''

them

in turn enable

from countr}^

that

a healthy sense of

necessar}' for a multiculturalist executive to

morning. Most experts agree that trait, it is

and

but the most heinous of offenses.

that every culture has certain beliefs

flexibility

disarm most anyone you might do business with

much

to

know

proposed

can be accomplished.

deal.

4

Family Matters

Working and Living Abroad

assume

et's

that after substantial

you decide to accept the overseas assignment. Are the problems associated with miscommunication in cross-

consideration,

cultural interactions

As

obstacle? No. as ironic as

may be,

it

to

it

may seem and

the major obstacle for

When an American a foreign assignment, knowing how

many expats accepts

your only major

strange as

the family.

is

properly present one's personal best

certainly important.

make

It is

just as

is

important to

sure that the spouse and children are

new

properly settled into their

surroundings.

Although you may have been handpicked for

and on the

this

plum

''fast

foreign assignment

track" with your

company, you wouldn't be the

first

expat whose "fast track" career was quickly slowed by a dissatisfied family wanting to go home. In order to

avoid your going from company

comet

to

family, I

wish we could adapt as well.

crushed soul, you, your

and your employer must plan

and work toward

a successful

experience together.

31

Trailing Partner One

of the

most important family concerns you

how the overseas assignment will partner.

will

affect the career of

need

to

address

is

your spouse or

A survey of 120 international companies prepared by

Windham International and that 88 percent of the

the National Foreign Trade Council

companies surveyed acknowledge that

found

in

overseas assignments, the issue of the spouse's career can be difficult to resolve.

According

forced to give

may

up

46 percent of the spouses are

to the survey,

careers they

pursued

in the US.

You and your partner

have gone to college together or met while working for the same

company

at the

same

level.

Now, one

promotion that requires a move

at the

of

you has been

expense of the partner's

Obtaining a work permit for the trailing spouse

Without a work permit, a career

is

offered a

is

often difficult.

usually put on hold.

competitive athlete sitting on the bench, not because he

enough, but because forces beyond his control

career.

It's

like a

good have taken him out isn't

of

And as if that's not bad enough, the competition on the field of play may be of second-team caliber. Needless to say, the trailing partner who wants to stay in his or her profession and has the necessary skills has a tough decision. Taking off for a few years may the game.

erode confidence, contacts, and

skill level. If

long, you're corporately old before

Going

in at the competitive level.

other practitioner that

is

you're out of the

your time and

it

an option, but a

on your own difficult

one

game

too

may never get back as a consultant or

to pull off. Is

it

fair

one partner should take a back seat? The partner coming out

second-best

may

obviously have resentment. In

many

situations,

spouses and partners will give up a career only to spend their time in a leased house, far from home, and without the benefit of

support. are

Most

of

them

are

women: 90

some type

of

percent of expats in the survey

male and 78 percent are married. For some spouses, the

opportunity to live abroad offers enough to compensate for what they leave behind; others inactivity

32

and

want

to stay

employed and

isolation very trying.

U.S. Expatriate

Handbook

will find the strain of

Your partner's

full

moral support

is critical

to the success of

your

endeavor, and conversely, his or her unhappiness abroad will

your job very

make

Before accepting the assignment, you and your

difficult.

partner need to discuss this issue frankly and thoroughly, considering

what your personalities and needs are and exploring the options available. You might consider the following questions: carefully

•

Does the

trailing partner

want

to

pursue his/her career path

while abroad? Will that be possible?

some other kind of work possible there that might appeal? This may be a good time to explore a new career path.

• Is

there

• If

there are children in your family, will the additional

demands

of living in a foreign country be too great to allow both spouses to • If

work?

working

in the host country

undesirable,

how negatively will Or

partner's future?

worth what may be • If

working

is

activities of

appears impossible or

impact the

this ''time-out''

the family finances? Will the experience be lost?

not an option, will there be other kinds of

value to the trailing partner? Schooling?

Community work? Clubs? While you are negotiating your new assignment with your company,

you should explore options for your spouse. Find out whether the company has any kind of compensation package for the trailing partner. Ask whether the company can provide a benefits package

that

includes continuing education or special travel arrangements for your

spouse.

Ask your company

to help

you arrange

or her. Culture Shock! Successful Living Abroad,

A

a

work permit

Wife's

Guide

is

for

him

a useful

resource in planning for and living abroad as a spouse.

One

of the

more

interesting stories of a partnership involves the

"praying hands" sculpture.

but had no funds. to

One

Two young men wanted

partner gave

support his friend. The sculpture

friend

who worked

to

up

his desire to

we see

today

is

to

be sculptors

become of the

a sculptor

hands of the

provide the necessary funding.

Family Matters

33

UpClo se I

Trailing Partners:

t's

unusual for an expatriate

to

have had

experience both as an executive responsible for

managing employees for

Changing

company and then

Forever -

after a family.

a multinational

as the trailing partner looking

Mary Wright has done

both and

shares the following interesting commentary.

An Interview with Mary

The

profile of the expatriate

trailing

family has changed considerably in recent years.

Wright

and the

Although the majority of senior

management continues

to

be male heads of

nuclear one-income families, potential employees,

not

fit

and

many high-

their families,

the traditional mold.

As

do

the

demographics of the expatriate workforce

and

their trailing families change, the factors

which determine the success or

failure of

expatriate assignment are also evolving. in the domestic workforce, families,

an

As

two income

wives as primary wage earners and

single professionals with "partners,'' are

longer remarkable.

no

An increasing number of

women are being transferred overseas, more

resulting in partners.

And

trailing

the

male spouses and

number

of female trailing

spouses finding themselves newly

unemployed has

Many

risen dramatically.

multinationals recognize the potential

problems involved in transferring one

member of a two-income even be reluctant candidates

family They

may

to consider those

who have

an employed spouse,

fearing a greater likelihood of failure. Their fears

34

U.S. Expatriate

Handbook

may be well

founded.

A recent

employee survey

was second only

at a

major multinational found that a spouse's career

to children's education as the

most

significant

obstacle to an overseas posting.

There

are,

however,

many

who

trailing "non-traditional" partners

have not only survived, but thrived, as expatriates. Counter

to

many trailing partners welcome the break from Those who welcome the break the most are, perhaps

conventional wisdom, their careers.

surprisingly, often the

They see the break career or a

new

most established and confident

as temporary

and they intend

in their careers.

to pick

or related profession at a later date.

up

their

The demise

post-war American philosophy of "one career, one company for

of the life"

has encouraged the emergence of a more mobile workforce, which

may be

well suited to an expatriate's lifestyle and opportunities.

A former fast-track female manager at a Fortune 500 company, now a trailing expatriate, feels

it

very important that you define your "real"

range of opportunities and choices. After a number of overseas assignments where she had changed companies to place her in the

same country

as her

even higher-flying husband, she decided

to

own long-standing interests. She is now happily pursuing a medical career which is much more location-flexible than

pursue one of her

her husband's work. Similarly, the male spouse of a senior

oil

industry

executive used the time of his wife's overseas posting to pursue a

master's degree in astrophysics, a major change from his previous career in business

which he

later

parlayed into a teaching career.

Another female professional welcomed the break from her teaching career that her husband's overseas posting allowed.

no

interest in

be well used

Although she has

changing careers, she believes that her time overseas can to further her professional

development through post-

graduate course work. She comments, "Companies should be looking

beyond

technical skills

postings. There

when

may be

considering employees for overseas

a personality type that

goes overseas better

than others; you had better be pretty flexible." These sentiments were

echoed by another

worked

trailing spouse, a

in trade finance

duplicate your career or

on Wall life

woman who had previously

Street.

here-that

is

She observed, "You can't

try to

one of the biggest mistakes

I

see people make."

Family Matters

35

Today's information technology has enabled an unprecedented

degree of career

able to continue to service

As

e-mail.

more

the world

some US-based

becomes

was from London using

financial services professional

"smaller/'

clients

many

careers are

becoming

transportable.

Even those find

One

flexibility.

trailing expatriates

new avenues

posting.

can

of fulfillment during their partner's overseas

A senior manager in the health services industry of 12 years

and mother of three shared, actually

who have less portable careers

went through

"I

had

a

dream job,

a grieving process

a

when I

wonderful nanny;

left.

I

But," she

added, "we never even considered not moving-it was too good of an opportunity for the whole family." She has since found satisfaction in

being able to share more time with her youngest daughter and pursue her volunteer interests. Through membership in a local professional organization she has also

managed

Unfortunately, multinationals the

new

to stay current in her field.

do not always prove

generation of expatriates. Not surprisingly, the major

complaint of the non-traditional expatriate

company benefits. family.

is

the lack of flexibility in

Multinationals have traditionally developed their

expatriate benefit packages

income

as adaptable as

around a male head of a nuclear one-

Major benefits typically include housing, schooling

for the children, a car or transportation allowance, a reconnaissance visit to

the

new

country,

and annual

trips

back

to the

home

And while most companies recognize that a happy and makes

for a

more productive employee, they

country.

secure family

are often not willing to

adapt their packages to suit the individual needs of today's expatriated families. Trailing expatriates frequently feel that

multinationals offer

little

or

no recognition

of the cost the family

must

bear in giving up one member's income and in some cases, career. Multinational companies that aspire to excellence in the global

marketplace require world-class managers; those managers will

human resource policies and packages that are responsive to their needs and lifestyles. One approach may be an expatriate package which guarantees benefits for a minimum of two

increasingly require

people, regardless of marital or family status.

The second person

might be a spouse, a non-married partner, elderly parent, or child care provider. This approach 36

U.S. Expatriate

would recognize

Handbook

that non-traditional

expatriates probably have at least one person in their lives

welfare

is critical

to their

own stability and hence

whose

productivity.

Optional add-ons could include education and career assistance for the trailing partner,

One

and

child

and elder

care.

of the benefits that both non-traditional

families alike

and

traditional expatriate

have found extremely helpful are customized pre-

relocation seminars. These seminars last one to three days tailored to the specific

and are

needs and questions of an individual family.

Various experts are brought in to meet with the family on issues

ranging from the cultural and social norms of the host country to educational and career opportunities for family members. Those

have participated

who

in the seminars agree that they serve to accelerate

adjustment and minimize surprise for the whole family.

The

reality is that the professional

workforce

is

changing. Dual-

income couples, single employees, and single parents are becoming an increasing part of the professional pool. "traditional''

based.

Some

mold on which most

None

of these groups

fit

the

expatriate benefit packages are

of the elements apply; others

do

not.

No policy will

must be some guidelines and some limits. Flexibility is a two-way street. There are benefits and costs both the employee and the multinational, and both should be recognized. Multinational companies that can embrace an attitude flexibility in human resource management will have access to the cover

all

eventualities; there

widest pool of employees. Those employees

for

of

who can respond in kind

will enjoy world-class opportunities.

Family Matters

37

Children The next area

of concern,

if

applicable,

one's children to a foreign country

is

your children. Relocating

is

not always easy and should be

why some

considered at great length. There are a variety of reasons expatriates are reluctant to include their children

assignment.

Some

children adjust easily to

Some

decidedly do not.

children

schools and relocated overseas especially

if

high school.

they are in the If

new

on an overseas

situations; others

who have been pulled

become

less

critical social

out of their

than enthusiastic,

years of middle school or

the children adamantly oppose being included in the

parent's overseas assignment, then the family

is

in a difficult situation.

You may also be concerned about moving your child to a country in which the health and /or safety conditions are risky, especially if a child has any special medical needs. Career advancement versus the children's well-being

overseas

may

create

is

a

tough choice. Forcing children

to live

problems that will ultimately have an adverse

consequence on the foreign assignment or create problems family from which these,

it

will

you might want

home with

be

difficult to recuperate.

in

your

For reasons like

to explore the option of leaving

your children

at

family or friends or in boarding school for the duration of

your assignment. Of course, concerns over your children to decline the

assignment. You would not be the

first to

may

lead

you

so choose.

If you choose to include the children on a foreign assignment, there are numerous issues that need to be addressed. Good communication between parents and children during both the planning stages and the

assignment

is

a necessity for the venture to be successful. Culture

A Parent's

Shock! Successful Living Abroad,

Guide provides practical

information from an experienced expatriate parent. The author insists that planning

and talking and

listening will be essential activities for

new adventure. She reassures nervous parents that children are much more resilient than adults often think they are and often respond wonderfully to new adventure. Work with the

whole family during

this

and you

will

these attributes

go

far.

Before leaving Include your children as

much

as possible in the decision-making

process and in your planning. The

38

U.S. Expatriate

Handbook

more they

feel

they

"own"

this

venture and have some control in

and the more they

the less likely they are to resent

it,

will participate willingly

and even

it

Have

eagerly.

frequent conversations with each of the children. Try to determine

what you hope they are express their fears and concerns and

what they

are really thinking (not just

thinking).

Allow them

encourage them

to

to help find solutions to

them. Subjects

unsettled

left

will only grow, not disappear. Set aside a daily time to discuss issues.

Do all you can to get your children interested and excited about their new home country. Children need to have a clear understanding of the surroundings that they will encounter in another country, and children have a distinct interest in the

new

the

if

culture, then living in

another country can be a positive learning experience for them.

Researching your

new

country can not only raise positive expectations

but can also provide a fun bonding activity for the family.

Make

family project to find pictures, books, music, stories, food,

etc.

new

land,

and plan together the fun things you

There are many,

your family

many

will

do while

a

it

from the there.

sources of information available to you and

for researching

your host country. Obvious sources

include your local libraries and the embassy of your host country. The Internet also provides a boundless source of information, sounds,

on countries

pictures sites at

all

over the world. There are also a number of

which your children can exchange concerns and experiences

with other expat children, and reassurance.

And

this

kind of sharing can offer invaluable

don't overlook the possibility of direct contact with

people from your host country in your

home

town.

Many ethnic

groups host clubs, events, and other gatherings that would help

you become

familiar with your host peoples

Besides enticing them with the also find

ways

strange in the will

in

to assure

new

new

and

of

culture.

you might be foreign and

aspects of the country,

your children that not

country.

all

all

will

Help them find out what kinds of things

be familiar to them there. There are a variety of ''American clubs"

many

will be. likely

cities

around the world; find out what

is

available

where you

Unless you will truly be living in the "outback," there will

be an American-style radio broadcast you will be able

while there-help them find

it.

Work with each

interests (soccer, ballet, music, etc.)

will

and

to

hear

child's particular

and help them discover how they

be able to pursue those interests

in their

new home.

Plan with

Family Matters

39

them which of their favorite possessions they will bring with them when you move. Be sure your children know the mailing address of your new home

to give to their friends

and encourage them

an address book so they can keep in touch with

to

their friends

make

and

family while gone.

Recognizing

at the outset that

adjustments will need to be made-even

with the most carefully laid plans-will help

begin the problem-

to

solving phase. Continual family communication will help to weather the

bumps which most certainly will

The opportunity

occur.

adjustment. Mishaps can occur out of the blue.

communication

that

survival skills are

In your

new

skills,

parenting

all necessities.

to invent

A foreign assignment is a big

creative solutions will be endless.

skills

It

should be apparent

and good old-fashioned

home without them.

Don't leave

country

Every day in our homeland,

we

necessities of life-food, clothing

are surrounded

and

shelter.

assignment to have material changes in leading to what

is

commonly known

all

by our accustomed

It is

possible in a foreign

three of these necessities

as culture shock.

Waking up

in a

strange environment, wearing unusual clothing, and eating peculiar

food

is difficult

The new growth.

for adults, let alone children.

may present the first opportunity for personal Getting the electricity and telephone connected may be major living quarters

you don't speak the language. The of paint, and decorations may speak of a

accomplishments, especially location, furniture, color

culture not your

neighborhood

if

own. Living quarters may be

may be cramped

for space

and

smaller, the

far noisier

than home.

Very likely a language barrier will separate you from your neighbors.

Simple errors in language can lead to complex misunderstandings.

However, making an

effort to

communicate may broaden everyone's

horizons and add to your cultural awareness. If

the children are in an

home will on

American

school, language in school

and

Young children may well than you since language

not be a problem for them.

to the local

acquisition

is

language more easily

an important part of

their cognitive

development

at

catch

in

You may find they are teaching you some local vocabulary. Take them with you on as many outings as sensible so they can mix childhood.

40

U.S. Expatriate

Handbook

with the local population. Food shopping will be a necessary adventure in the of favorite foods

new country. However, the availability and choices may be limited. Encourage your children to try new

food, but try not to force the issue. try to serve favorites

The climate

in

if

Whenever

possible within reason,

they are available.

may

your new location

also differ

from home, and a

may be necessary just to cope with the weather. Standards of acceptable clothing may also be quite different in the new location (especially for girls!). Children may need to wear uniforms to school. Blue jeans and sneakers may not be completely different style and type of clothing

crowd can make strange clothes. It is more

acceptable. Teens seeking to be with the in fuss for

if

they feel alienated by their

them

to feel accepted

contention. "in''

It

will

to the

their clothes will definitely

be important

to find out just

what

difficult

be a topic of

constitutes the

them obtain an appropriate extent that your budget allows. Peer pressure and

clothing for children

wardrobe

and

quite a

and

to help

acceptance at this age are of prime importance to them, particularly at a time

when most of their world

through

As

is

strange and new. Help

them work

this.

you will also need to pay particular attention to staying safe-for both you and your family. You can't take the safety of the US everywhere you go. Pre-plan if possible for a secure environment both at your new home and on the new job. Getting to and from work, the store, or school can be an adventure in some countries. Security is a must. Food and water may pose unfamiliar health risks that must be accommodated. Other health precautions and /or medications may need to be taken. Make a point to learn what dangers your new home a family

might present, and discuss these frankly with the family (without

them too much!). Develop them strictly.

terrorizing

enforce If

your assignment

family

may

face

is

is

in a Third

us are insulated from It

may be

it

it is

in a

and

World country, another trauma your

the grim reality of abject poverty. Although

certainly exists in the US,

country.

safety strategies together

it

perhaps not as widespread, and most of

way

disturbing to

you may not be in your host be living in what can be perceived that

as

luxury while the local inhabitants are struggling to survive around

Family Matters

41

may

you. This

many

raise

questions in the

mind

of a sensitive child.

This need not be an entirely negative experience. For

many

expats, this

eye-opening exposure has had a broad-reaching and lasting

effect

and sometimes even career paths. Don't shy away from with your children, but use it as an opportunity to explore

their lives

topic

on this

together one of society's most troubling problems.

The family bond All of these circumstances a disconcerting situation.

New pathways need to be created for essential

granted are missing.

everyday

may combine to make the new assignment Many of the familiar items taken for

living, taxing the creative capabilities of the entire family.

The working

who

partner,

also needs to adjust to a

new job, needs

members of the family, all of whom are struggling themselves. Keep in mind that the adversity will lighten and routines will take the place of the unknown. The family will have the opportunity to work together toward mutual solutions which may complete support from

be a

all

new undertaking for

Even with

all

them.

of the planning, there

is still

the possibility that the

upheaval caused by the challenges of living in a foreign culture will be strongly

felt

by both the children and the

items missing in the

new

family. Familiar comfortable

location plus the effect of

all

the

new

situations can bring about culture shock to everyone. Children will

perceive whatever uncertainty and unhappiness their parents are feeling,

and

this will intensify their

own feelings of inadequacy or fear

and general melancholy. Pretending

when it just isn't

so

unrealistic

is

reaction to this transition

the situation. However,

that everyone

and may lead

is

to disaster. Everyone's

may combine and magnify

if

adjusting well

the family pulls together,

the complexity of

all

of this

upheaval can be overcome. Daily communication, along with family problem-solving sessions, will

be needed

are facing.

Allow time

for discussion

while presenting assurances that cooperation from

answers

for the

abroad said he

Reward

all.

unresolved

made

must attend dinner 42

many new situations you of new and unresolved situations

to adjust successfully to the

U.S. Expatriate

difficulties

positive solutions

difficulties.

a family rule early

at

day's end.

Handbook

can be worked out with

He

and continue

to seek

A friend who spent 35 years on

that every family

member

required that everyone share

their day's experiences,

good and bad. He said

this little

requirement

helped bring out nnany problems before they got bigger. The time spent together as a family, solving problems as a family, will be beneficial to the cohesion of the

group and

will help create strong

family bonds.

The

early stabilization of a routine for the family will help everyone

feel

secure in the

play,

new

and bedtime

that will

surroundings. Regular hours for meals, school,

will help establish a sense of familiarity

be important

to all family

members.

and

security

A schedule will also help

group, each cooperating and sharing a

to solidify the family as a

meaningful place within the structure. There will be enough

unexpected confusion from the outside world. The family has to that within

itself,

Explore the

Do

there

new

is

know

order.

culture

everything possible to

opportunity. Take time to

make your time abroad an exciting enjoy some local sightseeing together, and

keep a family journal of your experiences and

difficulties,

your

impressions and solutions. Encourage them to get actively involved in

community if at all possible. Help each of your children find some aspect of the new culture. One might enjoy making a scrapbook of postcards or stamps from the places you have visited; another may want to follow the local soccer team; another child may get interested in studying the local music. The possibilities are limited only by the imagination. the local

a

personal interest in

much as you can about the land and people in your new home. Imagine how someone from another country and culture newly-arrived in your home town would go about becoming ''American.'' He would eat at local restaurants,

The best expat

is

the educated expat. Learn as

attend regional festivals, learn our sports heroes, our champions of

You already know most of this information just by having lived there all these years. The same is true of you when you land in a new country (like one of the Pilgrims 300 years ago). The reception party could be hostile or friendly- much depends upon your attitude, approach, and how they perceive you. industry, educators of note, etc.

With

a

few exceptions (and there are some), people are honored by

someone's

interest in their culture

and are eager

afraid to ask questions or to look foolish.

You

to share

will almost

it.

Don't be

always be

Family Matters

43

pleased to discover effort to

meet them

how helpful people can be when you make the partvvav.

European executive offers

In this context an experienced

advice: ''Balance your friends

between expats and

Americans clan together and concentrate negative points." Avoid the

company

this useful

local nationals.

Most

criticism of the host country's

of expats

who focus their energy

on the negative aspects of the foreign experience, and make every effort to

meet and spend time with people native

to

your host country.

Successful expats develop an educational approach to finding out

about their

new country. The following

questions can serve as a

beginning for further research for you and your family. These questions represent only a start and can be expanded as you develop

your •

own

areas of interest.

What is the country's

• \\Tiat

geographical profile?

are the countr\^'s

primary agricultural and

industrial products? •

What are countr}^?

• •

the political and economic structures of the

Are they

stable?

How does the standard of living there compare to the US? WTiat is the country^s relationship with the US? How are Americans perceived there?

•

What language(s)

•

How common is English?

•

WTiat ethnic groups are represented there, and what stratum of societ}' does each tend to occupy?

•

What

•

WTiat are the favorite pastimes and activities of the people?

•

WTio are the country's heroes?

•

When are the national holidays and why are these days

is

it is

spoken there?

the prominent religion?

celebrated? as

are

What events

in history

most

affected the culture

today?

•

What

•

WTiat are considered the culture's most significant

are

some

of the culture's folktales

contributions to the arts?

44 U.S. Expatriate Handbook

and myths?

•

What newspapers and magazines

are available?

Radio? Television? • Is

education free and

in the •

how

does

it

compare

to

education

US?

are the prominent forms of transportation? Do you need a special driver's license to drive a car there?

What

Balance the strange with the familiar At the same time you are helping your children explore

their

new

surroundings, don't forget that they will also need to maintain their

connection to home. Encourage them to keep in touch with their friends back

home through

letters

and

pictures.

Help them find

TV

stations that broadcast American programs and music; them to American movies from time to time if possible. Help them find ways to pursue some of the same activities they enjoyed at home. Adapting to the entirely foreign takes a great deal of mental and emotional energy. Being able to relax into the familiar from time to time will help them ''recharge the batteries" and feel ready to face

and /or radio

take

the

new once

again.

Some

final

advice along these

lines:

be sure to

bring along a supply of peanut butter!

Family Matters 45

Education International schools

As you consider

the schooling options for your child,

you

will

undoubtedly hear or read about "international schools." For people not involved in international education, the nature of what are termed "international schools" can be puzzling.

one educational system.

When

beliefs.

a

families

this

It is

first

Most

of us

go

to school within

experience that forges our educational

explore expatriate education, they discover

world of differences which often collide with some of the

beliefs

and

values that families hold dear. Robert Findlay, International Education

Consultant in London, shares information on issues facing families

whose First

children are educated outside the US.

we need

schools.

The term

curriculum school?

to dispel

is

Is it

some

of the

"international"

international?

myths

is

that

confusing.

Are we referring

the assessment procedure that

can answer these questions

surround international

we should

is

Do we mean

the

to the teachers in the

international? Before

look at the

way

in

I

which

international schools are established.

Most

international schools are set

group of expatriates working

in

up

to serve the

an overseas location. The founders of

such a school generally design the curriculum to

system of

their

home

country. This accounts for

international education.

needs of a particular

The many

reflect the

much

education

of the diversity in

international schools are rooted in

the various traditions of the groups they were founded to serve, almost

by

definition an education system other than that of the host country.

The

result

is

that a given international school will relate to a particular

national education system. While the students attending the school

may be

international, the curriculum

is

usually not. To meet the needs

of expatriate communities, international schools tend to base their

programs on the education system of the country representing

its

predominant group of parents.

and see how this principle operates in practice. Take London as an example. The largest group of expatriates in London is from the United States. There are six private schools within thirty miles of the center of London. These schools serve an American community of some sixty-five thousand people. In addition Let's look at a

46

major

U.S. Expatriate

city

Handbook

to the

American

schools, there are other expatriate schools serving the

French, German, Japanese, Spanish, Norwegian, Greek, and Dutch

communities

London

in the

When we look at that they serve

the

American schools

American

style education.

area.

families

in the

London

area,

clear

it is

and others seeking an American-

The core teaching materials come from the

The

States.

standardized tests used in the schools are American and are normed

on

a

US

population. The schools are accredited by

organizations based States.

There

is little

in the

US. Most

official

of the teachers are certified in the

doubt that the schools have

their educational

origins in the United States.

So are the American schools in the London area simply transposed to the

UK or are they distinctly international schools? It is

my belief that they are truly international criteria that

US schools

almost

all

schools.

international schools

1.

They have

2.

They serve the educational needs

a curriculum that differs

have

They meet four

in

common.

from the host country.

of an expatriate

community

living in a host country. 3.

They have

4.

They have modified

a student

population that their

is

international.

curriculum to

make

the

most of the

international setting.

For parents considering international schools, an awareness of the diversity in international schools

is

crucial. Parents

need

to

understand the varying nature of the international schools

if

they are

make the best possible decisions when moving abroad. While London is well served by US-styled international schools, there are many locations in which the international schools' curriculum and to

teaching styles are based on other educational patterns.

number British

A large

of English-speaking international schools are based

upon

the

system (over 200 worldwide). In the Pacific Rim, both

Australia and

New Zealand exert an increasing influence.

international school to

open

its

The

first

doors in Saigon has an Australian-

based curriculum, while the newest international school in Brunei has

drawn

its

educational inspiration from

New Zealand.

Family Matters 47

Choosing the right school Understanding and managing the differences in international schools is

the key to ensuring that the family

their to

new

location.

An inability

makes

a

smooth

transition to

to consider educational issues

can lead

unnecessary failure in the overseas assignment process. For children

of school age, school placement

is

Whether

a prime consideration.

place a child in an American, private, parochial, or local school

is

to

a

decision to be carefully researched. The age, grade level, maturity level, special

needs, and interests of the child

The school's curriculum, language

lie

be considered.

home,

on the other side

of this

A desired balance will help to discourage any unhappiness,

resentment, or anger the child easily result in behavioral

As

all

base, distance from

transportation to and from, and costs

equation.

must

a parent,

you have

school setting

is

to

may be

feeling,

do your homework

to

appropriate for your children.

quickly undermine the

and these

and academic problems

stabilit\^

at the

feelings can

new school.

determine whether the

Unhappy children can

of the foreign assignment. Usually

more easily to their new school. Children over this age may find it more difficult to adapt to changes, make new friends, compete with peers, and emerge with their selfimage and self-esteem intact. Communication among the child, the parents, and the prospective schools during the selection process is of chief importance. Although some bumps will be experienced in the best of situations, the parents must be willing to listen and sort out the seriousness of the child's concerns and be willing to adjust to achiev^e a satisfactory situation for both child and school. Obviously, clear and children under the age of 12 adapt

open communication among critical

all

parties involved will continue to be

throughout the school year.

Consider carefully the choices you have in your

may

first

post.

It

new

location.

You

consider the English-based international school at your

will

new

probably be supplied with teachers trained in the States,

using texts and

tests

from the States with

a curriculum to match.

students probably will be from families like your

own on a

The

foreign

assignment. Teachers will have experience working in this international setting

and

will usually also serve as counselors.

As

in

the States, schools will vary from small to large, sparsely equipped to

well equipped.

As explained

earlier,

depending on the original

48 U.S. Expatriate Handbook J

k

may be placed on specific areas while other areas are lacking. You may find much attention paid to sports and not to the arts. There may be extensive libraries or none at all. This diversity of options may also founding group and the current board of directors, emphasis

be due If

\'ou

have a

exposed

Keep

overseeing agencies issuing uniform regulations.

to the lack of

in

specific area that

to, it is

mind

you

are interested in having

wise to find out whether

that in

many

it is

your child

offered.

of these schools, competition can be

stiff.

Foreign assignments are generally given to upwardly mobile, highly educated, competitive senior executives like yourself with over-

achieving families to match. This can present a capable student and a disaster to a teen built

on the

football field

lot of

motivation to a

whose whole reputation was

On the other hand,

back home.

these schools, class sizes tend to be small, allowing for

individualized attention than

many

many

in

of

more

children receiv^e in the States.

This can be invaluable for either a highly self-motivated student, or for a child It is

who

needs additional academic and /or moral support.

possible that well-to-do local families

may

also place their

children in the international school. Their presence in the school

system will have an

effect

on the curriculum

of the school. This

is

an

opportunit}' for your children to be exposed to the local population in a setting of their peers

They may learn

position.

customs

and not just witnessing them a smattering of the local

in a subser\dent

language and

in the process.

Consideration

may be

given to other school options. International

schools featuring the language and curriculum of differing countries

may be also

av^ailable.

For reasons of your own, you

investigate these prospects. Local schools possibilities.

a

is

spoken.

If

you want your

child to be

in a local culture, out of the expatriate sphere,

language

barrier,

such a local school

school with a different language than for a ver\^

also present

Obviously, there are local schools, for instance in

London, where English

immersed

may

may want to

young

child.

Older children adapt

new language while tr\'ing cities may offer missionar)^

but without

may be a good option. A local your own may be a possibility less easily to learning a

to learn school lessons as well.

schools which

Some

will feature a religious as

Family Matters 49

well as scholastic curriculum.

You

need

will

to

determine the

and language base used.

religion

Educating your child

at

home is and

also an option both here

abroad.

Bellagio

your children are

If

already participating in

home

schooling, the transition will be

minimal If

offer schooling that

home

needs, then

be necessary.

lightly.

children

It is

schooling

may

ancient character,

narrow

a big to

streets

arcades,

be

The age of the

the extreme

may

require that

you submit goals and periodically.

Home schooling

as part of

It is

charm

situated at

(lake of

and

is

an

erected fortifications in bygone

Romans

On

the Villa Serbelloni

presenting local cultural events

low

Here the Gauls

a naval school.

does have the advantage of

spell of its

lake ofLecco)

times and the

results

its

end of the peninsula

historical spot.

before traveling to your post.

corners,

two branches

Como and

etc.

picturesque

which divides one of Italy's largest lakes in

Extended stays

its

the visitor will always

and serene beauty.

procure the needed materials;

study guides,

and

its

and

remain under the

You may be able to teach addition and subtraction but not calculus. You may need to texts, tests,

Europe

Dellagio has maintained

of course, a big issue.

is,

location in

meets your

and one not

obligation

My favorite summer

both you and them.

for

your foreign post does not

taken

Travelogue

established

the site is

where

situated,

Pliny the Younger owned his

an enrichment

curriculum.

It

famous

also has the

Villa Tragoedia. Villa

Serbelloni

function of separating the

was

built in

1539 by the

children from their peers with

feudal Lord of Bellagio, Count

both positive and negative

Francesco Sfondrati, and in 1788

results.

Attendance

at school

will help the children to acquire friends.

If

American will

most

the placement

is

an

school, the children likely

speak the same

language and have similar 50

in

U.S. Expatriate

Handbook

was donated by

the family

Sfondrati to the

Duke

Bellagio

was

Serbelloni.

in all times a

much

They could be the

cultures.

children of expats like yourself

who

are experiencing the

same

emotions as your children.

A foreign post presents many opportunities for growth for your

A successful school

children. desired

and appreciated

Personalities, artists,

resort.

career

and great

your children in the attainment

statesmen called this home. For centuries, the

many

a king

a significant step for

is

of their goals.

and some of

a parent,

regarding their education

and you must be ever

hospitality here including the

you

are accountable for the choices

made

most famous people found

As

attentive to

this responsibility.

Gothic King Teodoric, Emperor

Maximilian

I,

King Leopold

owner of the Giulia).

Napoleon I

I,

A FINAL note:

and

of Belgium (then

INTERNATIONAL CHILDREN

beautiful Villa

Franz Liszt and Marie

Your children have begun

d'Agoult spent a year here where their

daughter Cosima,

who

make

later

"Where

became the wife of Richard Wagner, was born.

friends

Villa Serbelloni

your

are

first

who

you

to

inevitably ask,

from?''

If

this is

foreign assignment

and

enough to know and remember their home the children are old

has guided tours, lasting about two hours, almost every day. There fine view of lakes

is

a

Como and Lecco

in the States, this question can

answered rather

be

easily.

along with a breathtaking view of

However, as foreign assignments

the Alps.

become more numerous and children are born abroad, the

question becomes more complicated.

It is

estimated that

there are one-half million

children from the category.

US

alone in this

They carry the

passport of a country where they

may have

1

lived only briefly, or

Family Matters

51

maybe not

who

see

at

all.

them

These children hold great interest for sociologists

as the forerunners of

an increasingly mobile society in

the 21st century

These young internationals

who live with their parents will

share the culture of their family, which

is

their first culture.

obviously

A second

culture arises through the encounters experienced while living

among

the peoples of a foreign culture ranging from poverty to opulence.

The

degree of the family's involvement with and attitude toward the local culture helps to shape their values

springs from the merger of the is

and

first

sensitivity.

two

A third culture then

cultures, creating a child

who

internationally mobile with a global identity. This total experience

including education, friendships local festivals,

made over a

and learning

lifetime.

local

made along

the way, participation in

languages will influence decisions

These children will inevitably help

future thinking regarding our attitudes

global neighbors. Your children

and

responsibilities

U.S. Expatriate

Handbook

shape the

toward our

may well end up among this

important group shaping our future as a planet.

52

to

.

5 itrt

Health Care

Tzvo:

Overseas

Working ancT iving Abroad

Practical concerns

H on

ealth care in

a par with or

your new country can be

below

become accustomed

that to

which youVe

in the US. Despite recent

debate over the future administration of

who

health care in this country, there are few will

deny

that the quality of

health care in the

US

is

among

the best in the world.

Having

may

said that, expats

find the health care in

their host

some ways US. Just

country to be in different

how

from the

different can to

some degree be determined in advance, and

this is advised.

Before you accept your

assignment,

it

would be wise

to

acquaint yourself with the health

standards and health risks you can expect to encounter in the

proposed country. Health care

may

If

poor health

care standards or a high degree of

look different

53

medical risk for you and /or your family are likely to outweigh the allure of

an overseas assignment, important to look

it is

best to determine that before

you

squarely in the face and

get there!

It is

discuss

with your spouse and family. There are certainly places in the

it

world that are dangerous. One that several of the

countries

had

to

this issue

human resources executive pointed out

company's overseas assignments

in Third

be canceled because of the health care

World

issue. 'Tn

where medical treatment is deficient and health standards are deplorable, there are very few employees who will consider subjecting countries

themselves,

Obviously,

alone their families, to that kind of environment.''

let

if

you or

member of your family has any

a

special medical

condition or needs, you will need to assure yourself that those needs

can be met in the

new

country.

Even

if

health care concerns do not

discourage you from accepting the overseas assignment,

wise

to learn as

much

it

would be

as possible about the health conditions in

your

host country so that you can take necessary and available precautions.

For an overall picture, areas of the world can be classified as low,

moderate, or multiple travelers.

The United

risk,

according to the health risks they pose to

States,

Canada, Northern European nations

(including France), Australia, and risk countries.

Moderate

New Zealand are considered low

risk nations include

European countries

bordering the Mediterranean, countries of the Caribbean islands (except Haiti and the

and the countries

Dominican Republic),

Israel,

South Africa, Japan,

in Eastern Europe. Health risks in these countries

include those of the low-risk nations plus food and water-borne illness

and some insect-borne

diseases. All the remaining countries are

considered to pose multiple health

risks. In

these countries, insect-

borne diseases are significant dangers, and the problems experienced with food and water-borne illnesses are greater.

much more dangerous due

to

Swimming is

also often

water pollution and /or dangerous

freshwater parasites.

See your doctor before you leave Regardless of the relative riskiness of your target country, you (and

your family,

you leave

if

applicable) should consider a visit to your doctor before

the US. Get a thorough checkup, review your routine

immunizations

54

to

U.S. Expatriate

be sure they are up

Handbook

to date (do

you need

a tetanus

example? Or have you had

booster, for

rubella?). If

your doctor

existing medical problems, ask

you have any

pre-

for a letter describing the

condition in detail indicating whatever prescription medications (with

names) you might need. Carry

the generic

you

go.

If

you have

this letter

allergies, reactions to certain

with you

unique medical problems, consider wearing a medical carrying a similar warning at

all

when

medicines, or other alert bracelet or

times.

Discuss with your doctor the potential health risks you will face and

you can take. Depending on where and travel, recommended immunizations may

possible preventative measures

you're planning to live

include cholera, hepatitis A, hepatitis B, Japanese encephalitis,

meningococcal meningitis, plague, fever.

You may

also

need

rabies, typhoid,

to procure a

medications (quinine-based

pills)

and /or yellow

supply of malaria prevention

and /or diarrhea medications. Many

countries will require proof of specific immunizations, so

you

will

obviously need these. For example, under the International Health Regulations adopted by the World Health Organization,

some

countries require International Certificates of Vaccination against

yellow fever from international travelers.

A few countries still require

a certificate of cholera immunization as well.

an immunization still

need

it.

is

However,

just

because

not required for entry into the country you might

Get expert advice on

this matter.

A helpful guide to immunizations and preventive measures for international travel

is

the

US Center

for Disease Control's booklet.

Health Information for International Travel, available from the

Superintendent of Documents,

Washington,

US Government Printing Office,

DC 20402. You can also call the CDC international

travelers' hotline at (404) 332-4559. Specific information

may

also be

obtained from local and state health departments, physicians, or travel clinics that

advise international travelers. You

may

also call the

US

Public Health Service's Quarantine Division at (404) 639-2572 for

immunization recommendations.

Health Care Overseas 55

Medication For individuals with any medical condition that requires prescription medication, to confirm

it is

important to check with the

whether that particular drug

is

US embassy

or consulate

legal in the country of the

As far as clearing prescription medication through US is recommended that the expat carry all relevant

assignment.

customs,

it

information pertaining to the drug

Keep

in mind, a

US doctor's

itself,

certificate

including the generic name.

does not necessarily provide

authorization for prescriptions to be taken overseas.

For your protection, leave containers.

If

all

medicines in their original, labeled

you require medication containing habit-forming drugs

or narcotics, carry a copy of the doctor's prescription attesting to that fact.

These precautions will make customs processing easier and also

will ensure that

you

you do not

which

live.

AIDS

testing

Many countries

require long-term foreign residents and students to

submit proof that they are that require this proof

Consult the embassy

an AIDS not,

violate the laws of the country in

test is

free of the

may

of the countries

accept certified test results from the US.

of the country

required and

check on the type of

HIV virus. Some

if

you

will

test results

test to

be residing in on whether

from the

US

are accepted.

be performed and whether

If

it is

own disposable needle. If you are consult the nearest US embassy or consulate for information

permissible to supply your overseas,

and advice, keeping subject to

its

in

mind

that

you

are in a foreign country

and are

laws and requirements.

For medical attention while there Moving

to

and

accompanying require this

living in a

new

land and environment brings

stress. In all probability the

some type

US expat

of medical assistance while

(and family)

abroad. Illness

adjustment period, and especially during the

may

during

first year, is

common. It is therefore a good idea to locate a physician with whom you are comfortable as soon as possible once you get settled in.

56

U.S. Expatriate

Handbook

One good to

information resource

keep on hand

is

the

International Association for

Travelogue

Medical Assistance

to Travelers

(lAMAT). They can be contacted at

Holland

A

736 Center Street in Lewiston,

NY

14092 (716) 754-4883. This

organization offers a free booklet friend of mine from Europe was

reading about our in the

own

''Dr.

Death"

containing information on

worldwide physicians,

US-Dr. Kevorkian-and

and other medical

how our

The

shared

cultures were

objective of

hospitals,

institutions.

lAMAT is to pair

different in this ofren-debated area.

up

He said

who can speak their language when they need medical

Europe had

the wealthy in

always practiced the treatment very

He

quietly.

told

me

treatment abroad. You might also

about his

grandmother who had suffered from cancer,

was dying and

pain. His

didn't

to live

refer to the Directory of Medical Specialists

in terrible

published by the

American Board

grandmother decided she

want

individuals with physicians

Specialists

any longer and

and

of Medical

its

22 certifying

member boards. Major requested "the pill" from her doctor.

card companies also maintain

The family had a big reunion and lists

each family

goodbye in bed.

over,

member

to the

When

took time to say

matriarch

who was

the gathering

grandmother took

credit

of local doctors

and

hospitals abroad.

ill

The US consulate can

was

also

help you find medical the pill,

assistance nearest you. In the

went quietly away. this

to sleep,

and passed

My European friend asked if

wasn't a more

humane way

handle the problem. After said,

all,

to

he

we, the survivors, weren't the

case of an emergency, the

embassy can

also help

you

contact family and friends and

arrange for the transfer of funds

from the US. However, you will

ones being racked by the pain and

be held accountable for

suffering, notwithstanding religious

payments

and cultural

service providers.

Who's

issues.

to

say?

to hospitals or other

Will the ways of European culture

find their

way

to

our shores on

m uch-argued poin

t

this

?

Health Care Overseas 57

Health insurance If

your company

abroad, be sure

is

all

you while

offering medical insurance to cover

details regarding the coverage are clearly spelled

out in the compensation package before leaving. Wherever possible,

Check whether the coverage offered abroad includes both routine and emergency medical treatment, hospitalization, and medical evacuation. get the best medical insurance available.

If

you must arrange

of the country

for

your

where you

own coverage,

will reside

whether the same coverage

is

pay

first

their

find out

medical

how

bills

citizens

and

Some

available to resident foreigners.

countries have government-sponsored health insurance that

may

also

provide coverage to foreign residents, while others have a dual system

with national health supplemented by private insurance. In countries

where many American expatriates

reside,

may

such as Mexico, you

find that local private international health insurance companies will offer

coverage to

US

citizen residents.

If

good coverage

is

not available

where you will live, you may have to rely on a US or international insurance company. Check with organized groups in the American

community

in

your area

obtain health insurance,

and

to

to learn

about these companies. Once you

remember

to carry

your policy's identity card

keep a supply of insurance claim forms handy.

There are a number of emergency medical assistance companies operating internationally

member tourists

travelers.

who

vacation,

who

Although the service offer yearly

designed primarily for

memberships which may be

Americans residing overseas. To learn about these

emergency assistance companies contact It is

is

encounter a medical or personal emergency while on

some companies

available to

medical treatment for their

offer urgent

important to note that the

a travel agent.

US Government cannot pay for hospital

or medical services for Americans overseas

and cannot pay

to

evacuate

you for treatment in the United States. The Social Security Medicare Program does not cover hospital or medical services outside the United States. The Department of Veterans Affairs will only pay for hospital

and medical service outside the United

veteran with a service-related disability.

58

U.S. Expatriate HANfDBOOK

States

if

you

are a

Travelogue Rome 1 ahcays

stay at

Cavaliere

tlie

Hilton, on the hill overlooking the city.

It is

a

little

out of the way, but a

wonderful part of town and the hotel is

On one of my most

great.

memorable evenings,

I

was

sitting in

the hotel lobby waiting for a friend to

gather in

me for a dinner meeting when

walked more than 20 Catholic

Cardinals from the Vatican. I had

never seen one Cardinal,

let

Another interesting

was with a

friend

who was

Roman

history.

artifacts

visit

alone 20.

a professor of ancient

He zvas

dug up from

perfume factory near

collecting

Cleopatra's tfie

Red

Sea.

This professor's specialty was recreating the beauty aids of ancient

Rome. In ancient

times,

many of the

natural ingredients used to

make

fragrances were imported from India

and China through up

to

Alexandria.

the Indian

From

were taken by ship up other European

cities.

to

Ocean

there, they

Rome and

Tlie professor

said the beauty aids were also health

and medicinal

aids to be either

consumed or worn.

I

Health Care CKtrseas 59

60

U.S. Expatriate

Handbook

Part Tjv6r

Consular Assistance AND Legal Issues

Working and Living Abroad

Required documents Passports

A

-L

JLmerican citizens should have a valid

passport before taking up residence abroad.

Once

living abroad,

Americans should

continue to maintain a valid passport.

If

you

are overseas, consult the nearest

US embassy all

or consulate.

Not

embassies and consulates

abroad are authorized

to accept

passport applications by mail or via a third part}^ courier.

Contact the

US embassy or

consulate in your consular district to find

out

if it

accepts

passport applications by mail or via a third party courier.

You should also bring with vou such personal documents as birth certificates and your marriage There's nothing like a

friendly face

and a

welcome hand.

which and

are often

needed

license,

to obtain

local driver's licenses,

and

to

housing complete

school matriculation. 61

Visas All governments require foreigners to have an appropriate visa in

order to reside in their country. This endorsement'or stamp placed in

your passport by a foreign government permits you country for a specified purpose.

If

you

to enter that

are planning to reside in a

country for an indefinite period of time, most countries will require

you

to seek residence status. In

most instances you must obtain the

necessary visa before you leave the United States.

Assistance from American consuls you

In your stay abroad

will

no doubt find the nearest US embassy or

consulate to be useful to you in

many ways. US

consular officers are

They

located in over 250 foreign service posts abroad.

advise and help you, especially

if

you

are in

trouble. In addition, consular agents in a

without

US

are available to

any kind of serious

number

of foreign cities

consulates provide a limited range of emergency and other

consular services.

Although consular

officers are responsive to the

needs of

Americans traveling or residing abroad, the majority of devoted

to assisting

Americans

who

all

their time is

are in serious legal, medical, or

They can provide the names of local doctors, dentists, medical specialists, and attorneys, and give you information about travel advisories. Consular officers also perform non-emergency financial difficulties.

services, including information registration,

on absentee voting,

and acquisition and

loss of

US

selective service

citizenship.

They can

US Government US tax forms, and They may also provide information on how to

arrange for the transfer of Social Security and other benefits to beneficiaries residing abroad, provide

notarize documents.

obtain foreign public documents.

Because of the limited number of consular

number

US

officers

and the growing

and residents abroad, consuls cannot provide tourism or commercial services. For example, consuls cannot perform the

of

tourists

work of travel

the police.

agencies, lawyers, information bureaus, banks, or

They cannot

find

you jobs,

get residence or driving

permits, act as interpreters, search for missing luggage, or settle

commercial disputes.

62

U.S. Expatriate

Handbook

Registration at us embassies or consulates you should register in person or by telephone with the nearest US embassy or consulate. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency. In accordance with the Privacy Act, information on your welfare or whereabouts may not be

As soon

as

you

arrive abroad,

released to inquirers without your express authorization. register in person,

passport data will

making be

you

you should bring your US passport with you. Your be recorded at the embassy or consulate, thereby

easier for

it

If

you

to

apply for a replacement passport should

it

lost or stolen.

Consular The Chief

officials

of Mission (with the

d' Affaires)

and

title

and the Deputy Chief

of

their duties

Ambassador, Minister, or Charge

of Mission are the heads of

diplomatic missions. They are responsible for

parts of the mission

all

within a country, including the consular post. The Economic/

Commercial

Officers represent

all

the commercial interests in the

country to which they are assigned. Their responsibilities include

promoting trade and exports, arranging appointments citizens

with local businessmen and government

providing the

maximum possible assistance to

for their

officials,

and

their country's

businesses within the host country. Political Officers study and report

on

local political

developments and the possible

developments might have on are well informed

effects these

their country's interests.

on labor issues

Labor Officers

in their particular countries

supply information on such things as wages, non-wage security regulations, etc.

The Consular

to give

you and your property the protection

They maintain attorneys,

and

lists

of

Administrative Officer of the post, including

is

all

in

with police and other

Their function

your government.

of their citizens living in the area,

act as liaison

costs, local

Officers are the ones with

whom you, as an expatriate, will have the most contact. is

and can

have

lists

of local

officials. Finally,

the

charge of the normal business operations

purchasing for the embassy or consulate.

Consular Assistance and Legal

Issues

63

Specific consulate services

FOR us CITIZENS Loss or theft of a

US passport

When living overseas,

the

keep your passport

home

at

Department

of State

recommends

in a safe, secure place.

passport kept at an available storage

facility

you

that

Although a

outside the

home might

maximum security, keep in mind that an emergency requiring travel may make it difficult or impossible to obtain your passport before departure. In such a case, it may not be possible to offer

immediate

obtain a replacement or temporary passport in time to

intended If

make

the

travel.

your passport

is lost

or stolen abroad, report the loss immediately to

and

the nearest foreign service post

to local police authorities. If

you

can provide the consular officer with the information in the passport, will facilitate issuance of a

new

passport. Therefore,

photocopy the data page of your passport and keep place where

it

it

you should it

in a separate

can be easily retrieved.

Passport fraud Multiple and fraudulent

US passports

are

used in

many

types of

criminal activity, including illegal entry into the United States. In

processing lost passport cases, the Department of State must take special precautions that

you suspect

a

may

delay the issuance of a

US passport is being used

to contact the nearest passport

American foreign

new passport.

fraudulently,

If

do not hesitate

agency in the United States or

service post overseas.

Federal benefits If

you

are receiving

(Social Security,

Management,

monthly benefits from

Department of Veterans

etc.),

departure from the

a federal or state

Affairs, Office of

agency

Personnel

contact the appropriate agency prior to your

US to

advise them of your residence abroad and to

inquire about the procedures for having your benefits checks sent

abroad. Federal agency monthly benefits checks are generally sent

US embassies or consulates in the countries where the beneficiaries are residing. When you move overseas, report your change of residence to the nearest US embassy or from the Department of the Treasury

64

U.S. Expatriate

Handbook

to the

The usual procedure

consulate.

forward the check through the

for the

is

local mail

embassy or consulate system to you.

possible to have your check deposited directly into a

located in the

US

It

to then

may be

bank account

where you reside. Check with the US embassy or consulate for

or in the country

benefits paying agency or the nearest

further information. If

your check does not arrive or you have other questions about your

US embassy or consulate.

benefits, contact the nearest

answer your

inquiry, they will contact the appropriate

If

they cannot

paying agency,

such as the Social Security Administration, and make inquiries on your behalf.

you move,

If

notify the nearest

US embassy or consulate at

least 60

days before the move. This will enable the Federal agency to

update

its

records so your checks are sent to the correct address.

Voting in Americans

US

elections

who reside abroad

ballot in all federal elections state

and

local

US

are usually eligible to vote

and may

by absentee

also be eligible to vote in

elections. Eligibility

many

depends upon the laws and

regulations of your state of residence in the US. To vote absentee,

must meet

state voter registration

ballot as early as possible

your

you

requirements and apply for the

from the

state of

your

last domicile.

Should

you may be eligible You should consult the nearest US

state ballot not arrive in sufficient time,

use a federal write-in

ballot.

embassy or consulate

for additional information.

to

Selective Service registration According

to the Military Selective Service Act, citizens of the

are to be registered

and who are not

in the

US who

US on any of the days

aside for their registration are required to present themselves at a

embassy or consulate

set

US

for registration.

Missing persons

When a US citizen abroad loses contact with friends or relatives in the US, the US consul is often requested to give information about that and whereabouts. Similar requests often come

individual's welfare

from American private and for

official

welfare organizations attempting,

down an errant parent who failed to make child The US consul tries to comply with such requests

example, to track

support payments.

Consular Assistance and Legal

Issues

65

after

determining the reasons for the inquiry.

US

address of the

citizen

about

If

the consul has the

whom the inquiry is being made, the

consul will inform the American of the inquirer's interest in getting in

touch with them and pass on any urgent messages. Consistent with the Privacy Act, the consul then reports back to the inquirer the results of their search efforts. Except in

not release any details about a

without the

citizen's

emergency

US

situations, the consul will

citizen's welfare

and whereabouts

expressed consent.

Assistance for Americans arrested abroad

When living abroad, you are subject to local (i.e.

you experience difficulties with the local authorities, remember American officials are limited by foreign laws, US regulations, and geography as to what they can do to assist you. The US Government cannot fund

your

legal fees or other related expenses.

a dispute that

consular

may lead

officer.

foreign) laws.

Should you find yourself in

to police or legal action, consult the nearest

Although consular

officers

neither the

and help you find

Department of

assume any

US

lists

of

However,

legal representation.

State nor

US

cannot get you out of jail,

serve as your attorneys, or give legal advice, they can provide local attorneys

If

embassies or consulates can

responsibility for the caliber, competence, or professional

integrity of these attorneys. If

you

are arrested, immediately ask to speak to the consular officer at

US embassy or consulate. Under international agreements and practice, you have a right to get in touch with the US consul. If the nearest

you

are turned

down, keep asking

unsuccessful, try to have

Consular interests

law.

officers will

and ensure

Upon learning

provide a

list

someone

of

you

your

are held

being treated

66

to protect

your legitimate

are not discriminated against

arrest, a

under

local

US consular officer will visit you, if

requested, contact family and

can help transfer money, food, and

and friends

to you.

They

also try to get

under inhumane or unhealthy conditions or are

less equitably

U.S. Expatriate

If

get in touch for you.

of local attorneys and,

clothing from your family

you

but persistently.

do whatever they can

that

friends. In cases of arrest, consuls

relief if

politely,

Handbook

than others in the same situation.

Other Legal Considerations Birth of a

US

citizen

abroad

Most children born abroad acquire

US

US citizenship at birth. As soon

citizen parent

consulate.

who are US citizens

to a parent or parents

as possible after the birth, the

should contact the nearest American embassy or

When it is determined that the child

has acquired

citizenship, a consular officer prepares a Report of Birth

US

Abroad

of a

document is recognized by US law as proof of acquisition of US citizenship and is acceptable evidence of citizenship for obtaining a passport, entering school, and most other purposes. Citizen of the United States of America. This

Death of a US citizen abroad When a US citizen dies abroad, the nearest US embassy or consulate should be notified as soon as possible. Upon notification, the consular officer, in accordance with local laws, may do the following: •

Require proof of the decedent's citizenship

(for

example,

US

passport, birth certificate, or naturalization certificate) •

Report the death to the next of kin or legal representative

•

Obtain instructions and funds from the family to make

arrangements for local burial or return of the body •

Obtain the local death

certificate

an American Citizen Abroad representative (This

to

and prepare

forward

to the

a Report of

US Death of

to the next of kin or legal

document may be used

in

US

courts to settle

estate matters) •

Serve as provisional conservator of a deceased American's estate

and arrange

for disposition of those effects

Because the costs for local burial or transporting a deceased body back to the

United States can be quite expensive, you

may wish

to obtain

insurance to cover this cost. Otherwise, your relative or next of kin

must bear these expenses. The US Government cannot pay to have your body buried overseas or returned to the United States.

Consular Assistance and Legal

Issues

67

Marriage abroad Consular

officers

abroad cannot perform

a

marriage for you.

Marriages abroad are generally performed by local officials.

officers

Once your marriage is

US

valid under the laws of the country

marriage was performed If

performed abroad,

or religious

consular

can authenticate your foreign marriage documents for a

marriage which

US.

is

civil

you

is

are married abroad

and need confirmation

A

where the

by most

generally recognized

fee.

States in the

that

your

marriage will be recognized in the US, consult the Attorney General of

your

state of residence in the

United

States.

Marriages abroad are subject to the residency requirements of the country where the marriage lengthy waiting period.

documents which translated

United

is

Some

performed. There

is

almost always a

countries require that the civil

are presented to the marriage registrar abroad be

and authenticated by

States. This process

Unlike in the United States,

a foreign consular official in the

can be time-consuming and expensive. civil

law countries require proof

capacity to enter into a marriage contract.

If it is

of legal

necessary to obtain

proof while outside the US, you can execute an affidavit of

this

eligibility to

marry

at a

US embassy

are also individual requirements

or consulate for a small fee. There

which vary from country

example, parental consent and blood

(for

tests).

to country

Before going abroad,

check with the embassy or tourist information bureau of the country

where you plan

to

marry

to learn of

any

specific requirements. In

addition, the Office of Citizens Consular Services,

Department

of State, Washington,

information on marriage in a

Room 4817,

DC 20520 has some general

number

of countries abroad.

already abroad, consult with the nearest

US embassy

If

you

are

or consulate.

Divorce abroad The

validity of divorces obtained overseas will vary according to the

individual's state of residence. Consult the authorities of your state of

residence in the United States for these requirements.

US

citizenship

US citizens who doing

68

so,

and residence abroad

take

up residence abroad,

or

who

are contemplating

frequently ask whether this will have any effect on their

U.S. Expatriate

Handbook

citizenship. Residence abroad, in citizenship.

However, a person

naturahzation and then takes

one year thereafter

on the grounds

and of itself, has no

who becomes a US citizen

up

a

on US

through

permanent residence abroad within

subject to possible revocation of naturalization

is

that he did not intend to reside

when

effect

permanently in the

was filed. Each particular case is judged on its own merits. Clearly, some persons may have intended to reside in the United States but due to unexpected circumstances had to take up residence abroad. Revocation of United States

naturalization

is

the petition for naturalization

the responsibility of the court

naturalization occurred.

The

initial

where the

steps leading to revocation are

taken by the Departments of State and Justice. Contact the nearest

embassy or consulate

if

you have any questions about

US

citizenship.

Acquisition and loss of citizenship

US citizenship may be acquired by birth in the United States or by birth abroad to a parent or parents who are US citizens. However, there are certain residency or physical presence requirements that citizens

may need

to fulfill before the child's birth in order to transmit

citizenship to their child born abroad.

one

to if

US

citizen parent

and one

A child born abroad in wedlock

alien parent acquires

US

citizenship only

was physically present in the United States for five the child's birth, at least two years of which were after Living abroad in military service or US Government

the citizen parent

years prior to the age of 14.

employment, or as an unmarried dependent

in the

household of

someone so employed, can be considered as presence in the United States. A child born out of wedlock to a US citizen mother acquires citizenship if the mother was physically present in the United States for one year. A child born out of wedlock to a US citizen father must establish a legal relationship to the father before age 18 or be

legitimated before reaching age 21, depending on the date of birth,

he

is

to acquire

US

if

citizenship through the father. For further

information on these legal requirements, consult the nearest foreign service post.

Loss of citizenship can occur only as the result of a citizen's voluntarily

performing an act of expatriation as

set forth in the

Immigration and

Nationality Act with the intent to relinquish citizenship.

Consular Assistance and Legal

Issues

69

These include naturalization in a foreign

making an affirmation

state

and taking an oath or

of allegiance to a foreign state.

Americans and drug use overseas While the dangers of drug use are not a subject I want

to

dwell on,

it is

worth mentioning that every year over 1,000 Americans are arrested

Anyone found

overseas for possession of illegal drugs.

possession of

illegal narcotics

the laws of that country.

to

be in

overseas will be prosecuted according to

Note well

that

US laws pertaining to

possession of narcotics are not applicable in other countries. incarcerated

on

a

drug charge, you could find yourself

confinement for months awaiting expect a sentence of

hard

labor.

up

The bottom

trial.

to ten years,

you

If

are convicted,

which may include

you

are arrested,

•

Few

•

Most countries do not accept bail

countries provide a jury

you

detention, often in solitary confinement,

• •

Diets are often inadequate

• Officials

are

you can

six years of

drugs overseas will find:

trial

many months Prisons may lack even minimal relatives

you

in solitary

line is that possession of illegal

leads to a dead end nightmare.

• Pre-trial

If

If

comforts-bed,

may last

toilet,

washbasin

and require supplements from

and friends

may not speak English

Physical abuse, confiscation of personal property, degrading or

inhumane If

you

treatment,

are convicted,

to ten years in

and extortion are

you may

most countries;

face a

70

local

U.S. Expatriate

one of the following sentences: Two

minimum

a stiff fine; or the death sentence in

Learn what the

possible.

some

of six year's hard labor

countries.

laws are and obey them.

Handbook

and

Travelogue Berlin 1

visited Berlin just after the fall

of the Berlin Wall in

November,

1989. While there, I took a cab to

Check Point Charlie piece of the Wall. I

to get

still

my

have

it

and

also got a piece of the Wall for a

German friend who fought German army but

later

immigrated

US and

a citizen.

to the

He was

in the

became

very moved.

He

shared his personal experience of the disaster at Stalingrad the

where

German advance was stopped

by the severe overnight drop in temperature-over 40 -F.

He

escaped that and also saw action at

Monte Casino Allies

came

in Italy

into southern Italy.

Coincidentally, in this

where the

my father was also

campaign.

Consular Assistance and Legal

Issues 71

^

72

U.S. Expatriate

Handbook

fU^I

7 Part Three: ;

Compensation Package

Financial

Planning for Life

Abroad

-L

when you began working for company that is now proposing to send

\l o doubt

the

you abroad, you looked details of the

were being salary,

carefully at the

compensation package you

offered.

You considered not only

but also other forms of compensation

such as merit pay opportunities, pension

and vacation and

plans, insurance benefits, sick leave.

It

may

very well have been one

of these non-salary benefits

—

^r^^-^^"^^

that tipped the balance

..^^^^

\

->fg;?tt''^:\

for

you when you chose

that

_

_

Now you are considering

_

r'ly^s^""""^^

/\y

company.

accepting an assignment overseas, and

X

it is

time to

renegotiate your compensation

package. Your living and "^

working conditions may change dramatically, and the compensation package you accept should reflect your responsibilities

Compensation: Are you speaking the same

living requirements.

your

life

It is

new

and your new

quite possible that

abroad will involve expenses you do

language.

73

not incur at home. For example, the exchange rate in the target country

may raise

the real cost of living significantly;

your children tuition

payments; you

your household costly security

in a

may need

to hire servants to help

measures

for yourself

Remember that whatever you have

to

send

to live

you manage

may need

very unfamiliar culture; you

to take

and your family

Your new compensation package should will

you may choose

to a private school while abroad, requiring substantial

such

reflect

agree to Stateside

is

new

conditions.

probably what you

with abroad, so take the time to think carefully about

what you and your family will need to live comfortably and safely You should review carefully all aspects of the benefits offered along with their implications. What you see and what you get could be different. Take pencil to paper to evaluate all offers on the table to determine

if

make

they

sense financially

Compensation packages vary widely from company

to

company; they

may even vary greatly among employees of the same company The package you negotiate will also depend on your new responsibilities and the

living conditions in the target country.

scope of this book to discuss or evaluate

you might make. However, there compensation that you should

What

follows

is

are

all

some

It is

not within the

the possible arrangements specific categories of

your negotiations.

at least discuss in

a brief discussion of these.

Salary Salary overseas

is

by the comparable

often determined

local salary

range of the foreign subsidiary. In specific countries in which the local salary ranges are not acceptable, the salary

market ranges of compensation international

companies

may be comparable

for expatriates of

to local

comparable

in the host country.

In the determination of the remuneration package, the basis for net

compensation will probably be the salary range position in the US.

The comparison

for a

comparable

of the net compensation will take

into consideration the following: cost-of-living expenses, taxes, social security, pension, insurance, etc.

Your net compensation should not be

lower with an international assignment. Allowances should be to adjust for inflation

and currency

fluctuations.

Determine

your company reviews the need for these adjustments.

74

U.S. Expatriate

Handbook

made

how often

Allowances Allowances

may be either increased

changes in remuneration changes in tax laws,

In countries

volatile,

etc.

where

inflation

is

consistently

reviews by the company should be done frequently.

"location allowance," designed to offset certain differences

the

US and

the host country,

on

or decreased, depending

currency fluctuations, inflation,

levels,

may also be included

A

between

in the package.

Relocation allowance

Moving a family anywhere, especially overseas, will involve costs you haven't considered. Will your company provide additional funding in the form of an extra moving allowance or bonus?

that

Mobility allowance Because of inevitable inconveniences that arise from each

may be

entitled to

an additional lump

assignment, and another allowance

sum

transfer,

you

at the start of the foreign

upon returning

to the

US.

Medical and dental plans Will your

dental

company provide you and dependents with

a medical /

program and a supplemental medical / dental program

covers you abroad? Find out

what reimbursement

is

that

in order.

Sick pay

What due

Life Will

salary continuation,

if

any,

is

available for short-term absences

to illness?

and accidental death or dismemberment

you be provided

life

insurance coverage?

Personal property insurance You

will probably

be required

to

purchase a personal property

insurance policy in the host country. This can usually be arranged by the company, although the costs incurred

may

not be reimbursed.

Compensation Package

75

Pension plan you be penalized in pension benefits because of the foreign assignment? As a result, specific arrangements based on your own

Will

individual circumstances should be detailed in the agreement. The

pension benefit level

may be based on funds that accrued The basis

foreign assignment.

for these benefits

during the

can also include

contributions and taxes that are either wholly or partially paid

by the

foreign subsidiary.

Unless stated otherwise in the agreement, the

US base salary should

determine the employee's benefits. In the event that the company

implements a pension plan

for the

legislation the foreign subsidiary

US subsidiary and because of

is

obligated to pay contributions to a

designated pension plan, find out whether you might be required to

reimburse the company for these payments.

Arrangements for primary residence in the home country If you own your current residence, you will need to decide what to do with

it.

Several options are open to you, and

you should arrange

a compensation package that will best support the option If

you choose.

you: Sell the property

Determine

who

pays for realtor

fees, closing costs, legal fees,

and

carrying charges. The guidelines for such reimbursements are usually determined by your company. In the event that the

property

is

sold below the designated fair market price, will

you be

reimbursed for any difference? During the time that the property

on the market, who

will

is

pay the following expenses: carrying

charges, mortgage interest, property insurance, real estate taxes,

and maintenance If

the

sale,

time.

company

costs related to grass cutting

doesn't

buy

the house or

you often become responsible Be sure

is

and snow plowing?

not responsible for

its

for all costs after a period of

to find out.

Rent the property The company may provide reimbursement for expenses related to rental agencies or property management. You might also get reimbursed for any shortfall between the actual rent received and

76

U.S. Expatriate

Handbook

the actual carrying costs. Reimbursements

mortgage

may be limited

to

interest (net following applicable tax deductions),

property insurance, real estate taxes, and appropriate rental fee

is

utilities as

long as an

charged.

Keep the property vacant If every effort has been made to secure a tenant and this proves unsuccessful, then how long will you be reimbursed for carrying charges? Reimbursements are often limited to mortgage interest,

property insurance, real estate taxes, costs related to grass cutting

utilities,

and maintenance

and snow plowing.

Household goods The company should absorb the

costs of packing

and moving

you should consult with

companydesignated moving agent when arranging transportation and storage. Find out whether there are any weight or volume limits and whether

household items. In most

your goods

cases,

be insured in

will

transit.

a

Your company should absorb the

costs associated with the door-to-door shipping insurance for

household items. Find out what procedures are followed in the event that a claim

short

fall?

attention.

needs

to

be submitted and

who pays for any

insurance

Your company usually does not ship items requiring special

The company does not pay

for fines, duties, or other

expenses resulting from undeclared goods. In the event that you

choose to place household goods in storage,

who pays

the costs

associated with storage? Are there any limits or deductibles? Find out

who

pays for household cleaning associated with the relocation.

Temporary accommodation and furniture You should be reimbursed

for appropriate living

expenses associated

with accommodations, meals, and necessary living expenses incurred while you arrange permanent housing or await the arrival of

household furniture. Make sure you understand the time

you

start

limit before

paying personally.

Transitioning family to assignment location In the event that

your accompanying family's relocation schedule can

not coincide with your transfer date, return

how often

will

you be allowed

to

home and who pays? Compensation Package 11

Traveling to host country You should be reimbursed

for all

documented

traveling expenses

same holds true documented expenses incurred during the return to US at the

incurred in relocating to the foreign destination. The for all

end of the assignment. Your company may

also

pay the expenses

of a

"reconnaissance trip" to the host country during which you can

become for

your

familiar with life

your new

office

there (housing, schools,

Travel reservations are usually

by

and make some arrangements

etc.).

air.

When the itinerary involves non-

more than twelve hours, an overnight stop along with appropriate accommodations should be acceptable. You should be permitted to bring an appropriate amount of personal belongings in stop flights of

addition to the regular baggage.

Housing

in host country

Your company should make sure that you and your family are housed in appropriate living quarters in the host country.

gone home when the new home has appliances one

to fix

all

the amenities?

on host country housing norms costs.

a wife has

no

that don't work,

them, roofs that leak, heaters that don't heat.

true cost of shipping

housing

Many

Housing

What

costs should

is

the

be based

as well as "expatriate" host country

Include the cost of

utilities in

your calculations.

Will personnel from the foreign subsidiary assist

you

in locating

an

appropriate apartment or house in the host country? Will the representatives from the foreign subsidiary also provide

you with

guidance regarding rental agreements and so forth?

During the course of the international assignment,

it is

strongly

suggested that you refrain from purchasing a primary residence in the host country. In the event that

primary residence

you do proceed with purchasing a company provide any

in the host country, will the

reimbursement related loss, real estate taxes

to the

purchase or subsequent

or otherwise?

purchase as a personal investment.

78

U.S. Expatriate

Handbook

sale,

The company may

investment

classify

such a

Schooling Based on the circumstances, you

may be provided with funds to

defray education costs at an appropriate school.

If

so, all

matters

regarding school choices should be approved in advance by the

company The funds provided

for education costs are often applicable

for preparatory education only

and usually don't include

universities, or other higher education schooling.

colleges,

Reimbursed

educational expenses usually include books, school fees, and transportation to

and from

school. Costs related to school uniforms or

activities outside of the general school

school

trips, etc.)

curriculum (sports, music,

may or may not be covered.

In the event that sufficient educational facilities cannot be provided,

you may decide

to

have the children attend

a

boarding school in a

Under such circumstances, you should be books, registration, and boarding. You should receive advance approval from the company in order to qualify for reimbursement. Further, you may be reimbursed for an annual trip to the location of the boarding school. Check whether separate location.

reimbursed for

tuition,

college students will be eligible for air fare reimbursement back to

the foreign assignment.

Vacation If

your assignment

is

outside the US, you should be entitled to an

annual vacation. Find out requirements and guidelines. Your vacation time

may be based on

the

number

of

months worked. Will

your corporate seniority be considered by the foreign subsidiary?

Home leave Will

you be

eligible for

auto rental?

Is

home

leave and accompanying airfare and

there reimbursement for

unused home leave time?

Personal matters You

will

probably have responsibility for handling

affairs pertaining to

on company or

may

regular

confidential

family matters before leaving the US. Depending

policy, the legal

expenses you incur in

not be reimbursed. Also, see

work schedule

moving,

all

is

visas, etc. This

how much

this process

may

time off from your

permitted to handle arrangements relating to

time off should not be deducted from your

regular vacation time.

Compensation Package 79

Your company should provide you with

all

pertinent information

regarding the host country. Prior to leaving the US, you and your

some

family should receive

Upon

cross-cultural training;

host country, the foreign subsidiary

arrival in the

may or may not provide an

introduction program for you and your family.

Before departure, you and your family

may be

required to have a

physical and dental examination, including any necessary vaccinations

and inoculations. All

related medical costs should be reimbursed.

When assignments are located weather climates or

hampered by intense questionable hygienic standards, you and family

members should have

a

in regions that are

complete physical on an annual

basis. All

costs incurred should be reimbursed.

Sale of automobile

You may or may not want to take your car. What do you do for parts in a small foreign town that doesn't service an American automobile? If

you

sell

your

car,

are

you

entitled to

in the event that the automobile

an appropriate cash adjustment

sold for a

is

sum below

market value? Does your spouse's vehicle qualify

What if you have

a

company

car at

the designated

for this coverage?

home?

Company automobile Determine whether you will be entitled

Who pays if you

to a

aren't entitled?

Close relative's illness or death back If

there

is

company automobile.

home

severe illness or death in your immediate famil); will the

company pay

for necessary travel costs?

Death What happens

if

you or

a

member

of

your accompanying family dies

during the foreign assignment? Where will the body be shipped and

who will pay for preparation and

80

U.S. Expatriate

Handbook

transportation?

Club membership Will fees related to club

memberships be reimbursed?

Travelogue

Servants Will

Monte Carlo

you be

expected

entitled to (and /or

to)

employ servants

in

your new foreign residence?

i\n easy way to Monte Carlo if

You may

you don't

expected to provide for their

like to

drive

is to

fly to

no airport

is

may not be

health and well-being.

Nice and take the helicopter (20 minutes), as there

or

in

Monaco. The old Pan Am flight

from

New

York used

to arrive

around 8:00 am. One half hour through customs, 20 minutes by chopper, at the

and you're having

Monte Carlo Yacht

coffee

Club.

The Yacht Club and Harbor have

some of the

largest private yachts

in the world.

Monaco

tourist areas, but

it

has

also has the

out-of-the-way spots not outsiders.

its

known

Take a cab up the

the little village ofEz.

hill to

Wonderful

restaurants, wonderful view. the road from is

Ez going

a small lane

the left side. lane, a

house

to

to

On

Cannes

toward the sea on

At is

the

end of the

built almost into

the cliff with a breathtaking

view

of the sea below.

Compensation Package 81

82

U.S. Expatriate

Handbook

The Taxman Pan

^,.,^^.

Financial

Planning for Life

Abroad

In

all

your compensation will be

probability,

higher in your overseas post than in your job

back home. Being able of this

income as

minimizing

to

hold on to as

much

possible, while legally

most expats.

taxes, is the goal of

One

of the

that

your worldwide income

US

problems of being a

expat

is

taxable

is

where you are stationed, where the assets

regardless of

are located, or

income

is

where the

earned. This

not the case in

many

countries and for

taxation,

your

non-US

what applies

to

and

you

in

specific circumstances is

generally determined by

law and by whatever tax that exist

is

other

expats. Regarding savings

US tax

treaties

between the US and your

with

US has negotiated many countries so that

US expats in

those countries are not

host country. The

»

I

Cometh

treaties

double-taxed-the IRS gives expats You can run but you can't hide.

credit for taxes paid to foreign

with which the

US has

such

governments

treaties.

There are

83

volumes of

tax advice written

by

authorities woridwide.

The goal

review general areas of concern and advise you

this chapter is to

have good tax representation

at

home and

abroad.

Make

in

to

sure these

advisors communicate with each other. Ideally, pick one tax advisor

who understands won't find

this

who will pay Some US other

home and

the

person

host jurisdiction, but you probablv

Most importantlv,

ver\' easily.

expats in a foreign countr\' hear about

non-US

friends

select

someone

you and your needs.

attention to

and co-executives

all

the creative things

are doing \vith foreign

bank

accounts, offshore trusts, and other creatively aggressive mechanisms,

and consider doing can do legally all

likewise.

may not be

worldwide income

taxable,

is

is

—what non-US nationals US citizens, countries may not tax

whereas other

For example, in the UK,

countr}'.

if

a

non-

UK resident is employed by a non-UK resident employer

and performs arising

ver\^ careful

legal for you. Unfortunately, for

income earned outside the domiciled

Be

of his duties outside the

all

taxable only to the extent

UK,

the compensation

received in or remitted to the

it is

UK. If you are a US citizen, proceed cautiously with aggressive advice. The best advice is to pay your taxes. The US is the best in the world at sur\^eillance and can track ever\^ bank wire in the world ever\^ day (over one trillion dollars in transactions). You will never elude them in the long run.

Taxation by the host country Besides paying

US

taxes,

you may have

government(s). Your host countr\^

may

to

or

pay taxes

may

to

your host

not subject you to tax

on worldwide income. Some host countries tax non-residents only on income received in their countn,; The taxation of residents usually depends upon whether an individual the host foreign countn,;

A person's

is

domiciled inside or outside

domicile

is

usually considered to

be his permanent home. Generally, foreign nationals on employment assignments for overseas employers are not regarded as domiciled in that countr}'. There are various tests to determine

whether you are

considered a resident for tax purposes. Here are some questions and data points you will need to determine for your tax planning: •

Residenc}' countr\^ in

84

is

often based on the

anv tax

U.S. Expatriate

year.

Handbook

number

Find out

when

of

days spent in the

the year starts

and ends.

•

Whether and how you for

are taxed

your stay in the country

and on whether your time

(for

may

also

depend on the reason

example, employment or travel)

living there exceeds a cut-off limit

beyond which you are eligible for taxation by that country. Will you average more than the maximum number of days per year as a visitor?

US government

Taxation by the what compensation can be

taxed by the IRS? Basically, everything

where excluded by the

taxable except

income can be tax exempt

in

Internal

Revenue Code. Some

your host country,

(for

example, moving

expense reimbursements and lump-sum relocation allowances). ever,

many elements

The following items •

of in

Reimbursements ''grossed

your taxation package are subject your compensation package

for foreign taxes.

up" by your employer

payments and

is

to taxation.

may be taxable:

Compensation

to balance

How-

is

often

any additional tax

to provide tax equity

•

School tuition reimbursements

•

Home leave reimbursements

•

Cost of living allowances

•

Housing allowances

•

Benefits in kind

•

Employer's contributions to a foreign pension plan

•

A deferred compensation plan when paid to employee

•

Medical insurance premiums paid by an employer

These are only examples of certain income tax situations. The interplay

between two

tax jurisdictions should be left in the

hands of

As stated previously, you need a tax expert in your home country and one in your host country. Ask a co-worker or fellow US expat who has lived some time in your host country to refer you to a reliable tax expert for help. Make sure that you are familiar with the experts.

tax return dates of

doesn't

know

your foreign host country-your

foreign requirements in

leave to return

most

cases.

home on a permanent basis, make

advisor alerts the foreign tax authorities

US tax advisor Also, when you

you or your of your departure and sure that

completes proper documentation as necessary. The Taxman Cometh 85

European- American Tax Institute There are

need

many

tax professionals throughout the

to "stay current''

on

world

a variety of subjects. This

who have a

need was

addressed by two Americans in Paris during the 1970s. Jim Myers and

Rod

Burton, along with another partner, had the vision and drive to

create the

European- American Tax

US tax law is nothing new They

Institute.

The need

to ''foreigners'' according to

relate the story of the

famous

to

understand

Jim and Rod.

British novelist Charles Dickens,

New York's harbor being pursued by a boat carrying tax officials from New York state claiming who in the last century was non-payment

steaming out of

of taxes after his brief lecture tour. E-ATI has 450

members from around

the world

and

is

growing.

The US government continues to tax or at least require reporting of income from both US corporations and individuals operating and resident abroad.

Nor can

foreign companies and individuals operating

US get very far before coming up against US taxation. For the newcomer to American shores, just obtaining a "Green Card" is more than enough to necessitate the filing of a US tax return, even if the in the

individual then decides not to continue to live in the US.

Even

know

today, the average

American

in the

US might be surprised

that living abroad for extended periods does

loss of

US

to

NOT result in the

citizenship but does entail continuing compliance with

tax law. This means,

income and being

among

liable for

US

other obligations, reporting worldwide

US Estate and

Gift taxes

no matter how

long the individual remains an expatriate. In the late 1970s the increase in foreign

and the growing number of US creation of

ownership of

citizens living

The European- American Tax

in Paris in 1978,

and

its

US businesses

abroad inspired the

Institute.

E-ATI was founded

stature as a professional organization for tax

lawyers and accountants has grown over the years. Chapter roundtables in major European

cities

bring

members

together with

informal discussions on a variety of current tax topics.

A typical

evening roundtable might feature a prominent Dutch tax lawyer leading a discussion on the

companies

86

at a

optimum

structuring of European holding

Dublin chapter meeting.

U.S. Expatriate

Handbook

E-ATI's specialized seminars

and courses update participants

on changing

Travelogue

tax

law including

arcane and technical areas of

compliance such as the treatment of offshore income by

Luxembourg

US companies

legitimately

US

operating abroad. Teaching

/\ friend and his family own a

tax

farm twenty minutes from

a specialty that E-ATI has

center of Luxembourg.

the

It is

a 200-

house was

the

theory

was

to foreign tax advisers is

developed

for over ten years.

Courses have been held not only

year-old house with barn attached

(when

law

in

Europe but as

far afield as

Sydney and Montreal. For one

built, the

that the heat generated

large Italian

company, E-ATI

held a program in the by the barn animals would help keep the adjoining house warm).

company's "executive campus." I

members attended E-ATFs Annual

Recently, Institute

was invited

to

dinner and the

ambiance was special-a great meal in a

charming setting with guests

Congress in Cannes which attracted top-level speakers

the speaking five languages. Sorry,

US Congress,

Treasury,

from

and

The conference offered US government representatives a

IRS.

but

I

could only communicate in

English.

On

another occasion,

was driving with

I

my friend from

unique opportunity not only

to

explain the latest changes in

US

tax Paris to

Luxembourg and passed

the city

ofRheims

in

France which

has a famous cathedral ironic that

How

law but also

to find out first

hand the European

tax

nity's reaction to their latest

"simplification" act.

my father brought home

commu-

was

The

result

a conference of outstanding

quality

and enjoyment.

with him after the war a small replica of this cathedral carved local

by a

Frenchman. The cathedral

brought back a number of

memories of his homecoming.

A bi-monthly newsletter keeps members on both

sides of the

Atlantic up-to-date

on the

comings and goings of other

members

in

what

is

mobile profession.

a very

A typical

The Taxman Cometh 87

News reports that the London tax manager (herself a US entertainment group has been promoted and

item in the E-ATI Scot) of a giant

New York headquarters.

transferred to the

Many E-ATI members of tax

are

European

work connected with

nationals,

the US. While

engaged

in

some aspect

most are employed

in

corporate tax departments, at least 25 percent deal with individual tax

work, often helping to file tax returns

proved

to

keeping tax advisers

US Congress

changes

indefinitely.

village

program

now truly with us,

Having

full circle.

nettle of

US taxation,

the Institute

US locations.

University,

acting as hosts.

At

last,

is

now

its

original role

Europeans

active in the

and European

to

grasp the

US with a

tax courses being presented

Prestigious business schools such as

New York University,

intricacies of their

E-ATI sees

started off helping

of tax roundtables

in several

US tax

for

requirements. Unless the

taxing American citizens abroad, this resource will be

With the global

coming

abroad to comply with the obligation

each year and assisting in tax planning. E-ATI has

US tax

mind about

needed

citizens

be a unique resource in Europe

current about its

US

Fordham

and Golden Gate University

European

tax lawyers can

own national tax

now

are

explain the

systems to receptive audiences of

advisers.

What's next on E-ATFs agenda? Maybe expansion into South America or Asia. In any case, the dramatic increase in cross-border transactions

and joint ventures) and the development of systems in many countries in the last few years

(mergers, acquisitions,

more complex

tax

suggest a bright future for The European- American Tax Institute.

Whatever direction E-ATI takes

Rod

88

in

forthcoming years,

Fm sure Jim and

will continue to lead their organization in the right direction.

U.S. Expatriate

Handbook

I

9

Currency Exposure Risk

Pdrtiltree: 1

Financial

Planning for Life

Abroad

M,

ost of us getting paid in the

US never

give a second thought to the value of the

we receive on pay day Compensation is in US dollars from a US bank and is currency

I

most

likely to

happening

much this to

be spent in the US. What

to other

world currencies

concern in our day-to-day

is

lives.

is

not of

Expect

change drastically when you move abroad.

you're

If

working

for a

company

offshore

and being paid

in a

foreign currency,

what you pay

for

dinner tonight or for gas to drive to

work

in the

morn-

ing will be directly affected

much is

by how

that currency

worth on the

global currency

market. The value of /

zvish

we were paid

US

dollars!

in

your currency

may change significantly on

a

day-to-day basis. Consequently, to maximize

your purchasing power and

to

minimize 89

losses

due

to shifts in the

value of the currency you are paid, you will

become familiar with the forces at work in world currency markets and learn ways to both take advantage of these swings and protect yourself from them. As Reinard Nigl, who works in the curneed

to

rency markets of London, comments: "Dramatic changes in currency rates can

have severe consequences not only

for big international

corporations and central banks, but also for private individuals.

do not have

to

own millions

to

make

You

profits or incur losses.''

The global picture Currency

is

bought and sold on global foreign exchange

markets. The value of a freely convertible currency these markets in

much

the

same way

is

(forex)

determined on

the value of consumable goods

is

more buyers determined than sellers of a particular currency, its value (price one must pay for it) goes up. If there are more sellers, the price goes down. in their markets.

To put

it

simply:

if

there are

Simple enough in concept, the forex markets on which money are massive (trillions!)

travels

is

traded

and extremely complex. Every day astronomical sums

change hands. Due

modern information

to

technology,

news

around the globe within seconds, and markets are open 24

hours a day.

Market participants include both central banks and big commercial banks. All trading

is

done on an over-the-counter (OTC) basis

interbank market. The participants

aim of making money from is

buy and

their trades.

sell

in the

currencies with the

When the banks' own money

involved (called "proprietary trading"), the persons involved are

normally under enormous pressure to perform well. Apart from trading for purely speculative reasons, these traders might also hedge their currency portfolios or trade

corporations,

who

on behalf

of big international

are exposed to currency risks.

Like the oceans, these markets cannot be tamed by anyone. The

markets are

made up

of individuals (the forex traders),

follow the herd. Generally there

make to

is

very

little

who normally

time for these traders to

their decisions, often resulting in actions that

sometimes appear

be based more on intuition or herd behavior than on a clear or

informed strategy Often something as tenuous as the release of

90

U.S. Expatriate

Handbook

economic data (trade

deficit figures,

unemployment

rates,

consumer

spending, tax increases, changes of government or in interest rates, etc.)

can have an enormous effect on the price of a particular currency.

With regard

to central banks,

through trading currencies in the industrialized

single currency,

it

it

is

should be pointed out that their power

rather limited.

world would

would

If all

major central banks

fully co-operate to

take less than one hour for

support one

all their

foreign

reserves to be exhausted. For example, the events during the 1992,

fall

of

when New York-based George Soros with his hedge funds forced

the British

pound out

(ERM) give

of the

European Exchange Rate Mechanism

a clear picture of the

overwhelming power

markets. In this case, the British government on

its

of these

own could

not

support the British pound. The pound was driven and valued solely

by the markets.

How does all of this affect international trade? Let's take a big US company which

multinational

The currency used logically in

come in

US

products

all

over the world.

and the balance sheet are However, receipts from international sales

for production costs

dollars.

all sorts

sells its

of currencies. In order to remain competitive, the

products must be sold in each country at prices which cannot change

every day. Unfortunately the currency rates do. stronger, this

If

the

US multinational company will take a

Deutschmarks,

etc. in

which

receipts are paid will

US dollar gets

loss, as the

buy fewer

(used to pay personnel and production costs Stateside).

uncommon

for international sales profits to

It is

Yen,

dollars

not

be wiped out by adverse

currency moves.

On the other hand, if the US dollar weakens and which the company

make

is

paid get stronger, our

US

the currencies in

multinational will

Sometimes these profits enable producers to bring down, so they can undercut their international

a profit.

sales prices

competitors. That

is

why exporters want a weak

their

(in their eyes,

competitive) currency, whereas central banks favor a strong currency in order to achieve

monetary

stability Treasury

departments

in large

corporations and central banks have the task of keeping these

problems under control. They can buy and

sell

currencies in the spot

and forward markets and they can use various hedging instruments, such as swaps and options. Furthermore they can go long C'betting'' Currency Exposure Risk 91

on

a strengthening currency) or

go short ("betting" on a depreciating currency).

The ultimate

success of these strategies

is

Travelogue

very

difficult to predict.

How CURRENCY

Capri

EXCHANGE RATES AFFECT YOUR COST OF

AND QUALITY

LIVING

OF LIFESTYLE What

company, also applies If

US

to

lower part of the mountain, and

Anacapri, the upper part. All fresh

from

Isle

of Capri

piped

is

The

the Italian mainland.

you

your employer

sends you out to work in a different part of the

he island consists of Capri, the

water on the

applies to our big

living abroad.

1

world

ride from the dock (where

you get

off the hydrofoil from Naples) all

for a

the

way up

the

mountain

is

a scary

prolonged time, fluctuations in currency value could have severe

narrow with no guard

implications for your financial

You have been used

well-being.

to using greenbacks. But now,

you want

to

buy

a

you have

to

pay

in yen.

is

meal

strong relative to

and you

the yen

US dollars

are paid in yen,

if

your expensive meal

is

a

good one.

You

will

need

to consider the

implications of relative currency

values and their fluctuations

when you

92

negotiate your

U.S. Expatriate

hope the driver knows what

he's

doing. After departing the cab, take the ski

lift

to the

very

top.

There are approximately 90 acres

on the very top of the mountain.

you are paid in dollars and must pay for your meal in yen, you can only hope that

You

rail.

your

dinner will be a bargain.

However,

is

if

in Tokyo, If

journey indeed! The road

Handbook

You can look down Grotto below.

to see the

Blue

compensation and plan your finances for your stay abroad. at the

exchange rate over the

US

host currency relative to the

power

last

few years

dollar.

First,

look

to get a clear picture of the

Then

establish the real

buying

and accommodation

in this country. For example, food, cars,

in

Europe and Japan are normally twice as expensive as in the US. For an American now working in Zurich, an attractive annual salary in the

US converted into Swiss Francs might prove to be just average by local standards and may not ensure the previously enjoyed life style. This shortfall, of course,

package. Inquire

can be offset by a good expat compensation

how much of your net wages will

actually be

available for spending.

Personal investments, plans for retirement, and optimum currency when arranging your finances for assignment is where and when you will be spending

One important factor to your overseas

money you earn

consider

abroad. Chances are good that

some portion

be spent on living and traveling abroad (though

your company

is

paying for

these),

and the

this

rest will

of

it

the

will

may be minimal if be invested or

otherwise saved for future use. Think about what you intend to do

upon your

Whether

return.

head-office in the

will

it

be retirement or working for the

US again, you need

to decide

what your base

currency will be. In other words, what exactly will be the color of the

money you

intend to spend in years to come? Going back to our

person working in Switzerland: she intends to

retire after

US

her foreign

home in Arizona with US dollars and all living expenses will be paid in US dollars. Obviously, they were wise to have kept all their investments in US dollars. Currency swings between the Swiss franc and the US dollar are of assignment. She and her husband will buy a

minor importance and Keeping

all this

in

affect

only the amount spent in Switzerland.

mind, the currency you are

company

to

be paid in might be a

you are working in a country with a relatively weak currency and your company, for its own financial reasons, insists on paying your salary in that currency, it would be to your advantage to negotiate a compensation package with negotiating point with your

a salary just adequate to cover

If

your overseas expenses, perhaps with

your living expenses covered by the company so you need very

little

Currency Exposure Risk 93

money

in the host currency,

and with compensation more heavily

weighted in other forms more useful

you later (such as pension plan, stock options, etc.). Conversely, if you are going to a country with a currency generally stronger than the dollar, you might want to maximize the amount of money you collect in that currency, as it will buy you more dollars later when you need them. to

In the process of gathering information

options,

you might

financial advisor

and considering your

financial

find the advice of a private banker or other

who is

familiar with international currency

investment issues very valuable. The time and

money you

and

invest

upfront arranging your finances will pay dividends in both

money and

peace of mind.

Summary: some questions to ask •

Will

I

see •

US

be paid in

dollars, in the local currency, or both?

what is most advantageous to you and how much your company can accommodate you.

Determine

What

is

for yourself

the real buying

power and subsequent

cost of living in

the host country? •

How much money will I have to spend in this foreign country and how much

•

Can I have

local tax will

a split

I

have

employment

to

pay?

contract,

percentage will be paid offshore and in •

Can I save money and can

•

Where do I wish

to

this

whereby

US

dollars?

amount be paid

spend most of

in

Are

my investments denominated in US dollars?

94 U.S. Expatriate Handbook

US

dollars?

my money at a later stage (e.g.

retirement)? •

a certain

Banking and Part

Tliree:

Investment

Financial

Planning for Life

Abroad

T

his chapter deals with financial matters

which, depending upon your income

level,

net worth, and personal philosophies, could

now

be appropriate

or at a later date. In getting

established in your

new home, you need

will

to establish a

banking connection with a local bank.

Your

local

banker

know people who provide many

will

Yi

services that

L I

L.

will need.

way

you

An easy

to establish this

banking relationship

from the

US

is

to get

a letter of

introduction from

your bank in the

US

to its foreign

correspondent bank overseas. In addition,

Which bank do

your employer

a payroll account at

a local foreign

will have bank who

will

know your

you choose?

95

company and feel comfortable in opening your personal account. Some individuals like the personal services of a private bank as opposed to a commercial bank. You will be able ^:o obtain much

home

data and information regarding the large commercial banks at

and abroad. Experienced expats appropriate private bank

if

determine the right bank, benefits of private

that

in the area can help is

you

find an

your preference. To help you

this chapter will

review some of the

banking services provided

to clients

with

international needs.

Private banking Client services

is

one of the more traditional banking

activities offered

by private banks. These services usually involve financial planning and management for individuals and families and, when appropriate, the structuring of assets through the use of offshore trusts

and holding

companies. Keep in mind that some of these planning techniques

US citizens as jurisdictions because of US tax laws. don't

work as

well for

they do for residents of other In

many

cases, the

planning and

management mechanisms are aimed at legitimately minimizing taxation, but more broadly, they address the long-term need to achieve security, diversify assets,

generations.

Beyond

and

transfer wealth to subsequent

establishing a planning

structure, the offshore

and management

banker provides a complete range of private

banking services which include custody, investment management, and banking

Safety, security,

facilities.

and

confidentiality are their

benchmarks. The level of sophistication of offshore banking to the point that

it

is

sometimes can be even better than onshore.

In reviewing the history of the private banking industry, there

Even

in the 1600s,

is

However, over the

course of the twentieth century, the "snowball

way

for the

money

bank mergers now dominate the

effect''

center banks that

of

market. Because the banking industry continues to streamline

was inevitable that some would be eliminated.

operations, service

96

it

U.S. Expatriate

Handbook

a clear

not a

confidential financial services to their clients.

has paved the

is

phenomenon of the twentieth banks were privately owned and provided

indication that the industry itself century.

growing

its

"traditional" forms of customer

Unfortunately, because of this market expansion, the personal relationship bankers

had with

their clients

has become largely

disregarded by a sizable percentage of banks. In spite of

banks that were not subject

As

many

a result,

to a merger, continue to

the

from the banking

public's appetite for receiving personalized attention

profession has remained undiminished.

this,

smaller

provide the

personalized service their customers want. This consistent level of

was noticed not only by

service

the bank's customers, but

financial institutions as well. Recently, the

begun

to see personalized

develop a

by

banking profession has

customer service as an opportunity to

new market built on a proven "commodity," and

offspring of banks built

customer service Professionals

is

on the concept

realize that there

existing services.

a

new

of providing exceptional

emerging.

who have been involved is

larger

more

to

in

banking

for quite

The foundation

of the profession rests largely

bank's ability to achieve long-term relationships with

Contrary to what others

some time

private banking than just expanding

may think,

it is

not only

its

its

customers.

investment

strategy that determines a bank's success, but also the level

quality of service provided to the customer.

on the

and

Most surveys by

companies worldwide indicate that personal service

is

trust

generally as

important as investment performance. For

many years,

individuals with personal wealth have looked to the

offshore banking industry to provide guidance in maintaining their financial assets. In

many

utilize offshore trust

many

clients

cases, private clients

have been advised

to

accounts as well as holding companies. Although

have chosen

this strategy to

minimize

their tax burdens,

offshore markets also serve as a stable environment to maintain

various personal securities. In these instances, offshore bankers not

only provide financial consultation, but also offer clients the benefits of

investment management, safe custody, and comprehensive banking facilities.

Advice with regard

management, and

to offshore insurance, foreign

interest rate risk are just a

exchange

sampling of the unique

services that the offshore banker can provide to the private client.

Although the private banking industry continues pillar of the offshore

market

is

to

be regarded as the

market, the past dominance of Swiss banks in the

starting to change.

Commercial banks from other parts of

Banking and Investment 97

the globe have already

made

a dent in the market.

While the new

competition approaches the market from a different perspective than the traditional banking institutions, these institutions nonetheless offer

the investor expertise v^ith regard to investment banking, information

technology systems, and asset management.

The prominent offshore banks have been regarded as solid, secure, and worthy financial institutions. As the market continues to evolve, the prominence of offshore financial centers continues to be

recognized. The changes in the offshore industry can be attributed to

fewer restrictions and expanded opportunities. As a is

result,

not only

more competitive, but there is a greater variation in services that are offered. Not surprisingly, a substantial

the market

financial

the

percentage of expatriates have chosen to have their investment strategies

implemented by offshore banks.

While the financial comparable

assets of these individual clients are not

to corporate clients, they are nonetheless

an important

component of the offshore market. Recognizing this, major banks have targeted consumers by offering extensive services with regard to

investment funds in major offshore financial centers around the

world. Consequently,

bank regarding

its

it is

easy to get information through your host

offshore services.

Some expats want

to transact

employment for concerns which they didn't

their financial affairs out of their country of

reasons of security and confidentiality,

have back home.

Using your credit card Despite what the advertisements suggest, the credit cards that you're

now may or may not be accepted in international locations. may have been issued through a US financial institution that may or may not be accepted or known to the overseas vendor. And that in itself can become a sticking point. Consider the carrying

Your

credit cards

following scenario: After treating his European counterparts to dinner in

an expensive French restaurant, an American executive found

himself in a very embarrassing situation to accept his credit card as

gentleman asked

for

payment

when

the restaurant refused

for the dinner

bill.

When the

an explanation, the restaurant informed him that

they only accepted credit cards issued through banks in the host

98

U.S. Expatriate

Handbook

country. Since his credit card

gentleman was

was issued through

money from

forced to borrow

the dinner check.

(What

a

way

a small

US bank,

his dinner guests to

the

pay

to influence potential clients!)

US credit cards that you're carrying now are accepted common sense and caution need to be used. First, find out in advance if the establishment accepts your US credit card. For those Even

the

if

abroad,

that do,

keep in mind that any purchases you make will be calculated

with respect to the foreign exchange

rate. If

the

US dollar happens

be weak against that particular currency, then you would be better paying the the

US

on the

bill

dollar

with the country's

is

strong, then

to

limit.

to

off

on the other hand,

If

your advantage

However, be sure

credit card.

designated credit

it is

own currency.

to

to

put the purchase

keep an eye on your

There have been cases where Americans were

actually incarcerated abroad because they inadvertently attempted to

US credit cards that had exceeded the credit limit. In the long run, the expat who plans to use credit cards on a regular basis would be

use

wise to also possess a card that

issued from a financial institution in

is

the respective country.

Money laundering A private banker is under pressure to adhere to the banking codes of his jurisdiction.

international

and the sources to

These codes have been put in place

money

laundering.

of their funds.

to

prevent

A banker must know his customers

As

a result of these codes,

you

are likely

be required to furnish an extensive amount of confidential

information about yourself and your finances. To help you understand this necessity a little better, a brief discussion of

money laundering

may be helpful. Although useful carefully

in

many ways, one needs

and work with them

financial services can

Money

to

choose an offshore bank

cautiously. Offshore

banking and

be the target of money laundering schemes.

laundering continues to be an issue of concern to the financial

service industry

perpetuate

its

and

it is

existence.

important to recognize the factors that It

has been estimated that each year between

money infiltrates the world economy. money laundering is the third largest business in the

$100-$300 billion in dirty Ironically,

right

world,

behind foreign exchange and the petroleum industry. Because of

Banking and Investment 99

expatriates

this, all

and

their advisors

should have a clear

understanding of what's involved. You can reduce the risk of

becoming inadvertently involved understand

in a laundering transaction

if

you

how it works.

In analytical terms,

money laundering is divided

into three phases.

Obviously, the identity of a proprietor of illegally gotten or held

money needs exists.

to

be hidden in such a manner that no recognizable

Because there

is

the primary objectives

often a large

is

volume

one of

of actual currency,

to "downsize'' the physical

bulk of

it.

trail

It is

impractical for a narcotics dealer to "wash" 5 million dollars in ten or

twenty dollar

bills.

Thus, in the

first stage,

for traveler's checks, international

money

the cash

is

often exchanged

orders, or other negotiable

forms. In the second phase, often referred to as "heavy soaping" or "layering," the funds are separated

from

usually achieved by transferring the

businesses which

may

their illegal sources. This is

money

to

and from

fictitious

only exist on paper but have been designed to

eliminate any possibility of an audit. The third phase, sometimes

and integration phase," involves

referred to as the "repatriation

returning the laundered funds to general circulation. Ironically, by the

time the third stage has been realized,

it is

not unusual for the funds to

qualify as taxable income.

There are

many tax havens

that are scrutinized for

money

However, most of these jurisdictions are becoming more

laundering.

selective in

some people think that Switzerland is a money, but even the Swiss have enacted more severe

accepting funds. For example,

"haven"

for quiet

legislation. stability

Although Switzerland has long held a reputation

and secrecy

role in the

war

in banking,

against

money

it

for

has nonetheless pursued a proactive

laundering. Despite the fact that

Switzerland continues to promote cutting-edge financial services, tolerance of

money laundering is not part of its agenda.

In order to

reinforce this security philosophy, Swiss-based financial institutions,

accountants, lawyers, fiduciaries, and other applicable providers are

requesting detailed comprehensive information about assets from both current and prospective clients. Clients are asked to provide

information on the origin of

fair

100

for.

game

In

applicable assets, the disclosure of

all

and statements about what the assets are to many cases, an individual's employment history is also

beneficiaries of the assets,

be used

all

for scrutiny.

U.S. Expatriate

Handbook

Asset protection planning

A part of the evolution of estate planning is the asset protection trust. An expat may not be exposed States,

but

it is

to

such planning techniques in the

widely used abroad. Asset protection

is

a planning

process in which assets in one jurisdiction are transferred to another jurisdiction in a

and

way

that protects

them from the claims

of creditors

other claimants.

Because of the continuing

demand

for

proper disclosure in the

field of

asset protection, the banker will want to determine whether anyone

wishing asset protection will be an acceptable

client.

To protect the

bank's reputation and security, the banker will utilize a comprehensive screening process for every prospective the banker at risk of

becoming involved with unscrupulous

which can ultimately subject the banker penalties.

do so places

client. Failure to

During the

initial

both

civil

and criminal

meeting, you will also have questions,

and thus a mutual screening process During the course of the

to

clients,

initial

will occur.

meeting, the banker should discuss

applicable details of the designated retainer agreement with you.

you wish

to proceed, the

agreement that

banker should require your signature on the

states that the relationship will

to pass the screening test.

that

of

you

will

all

If

The agreement may

compensate the banker

be terminated

if

you

fail

also include a provision

for services rendered, regardless

whether you pass the screening process. In addition, you will

undoubtedly be required •

to provide at least

some

of the following:

Your name, name of spouse and dependents, dates and location of birth, residential

US

and business addresses

•

Proof that you are a

•

Social Security number(s) for

•

Federal and state income tax returns filed during the last

citizen or current

immigration status

you and dependents

five years •

Information regarding marriages and financial obligations regarding alimony and /or child support,

•

Wishes

for restrictions of rights to

dependents and reasons

if

any

be applied

to the

spouse or

why

Banking and Investment 101

If

you

are establishing an offshore trust or offshore company,

be asked

you may

provide additional information, including:

to

•

All applicable financial statements

•

All applicable tax records for the past five years of any corporate

ventures in which you are an officer or a major stockholder, as well as

names

of other major shareholders,

contracts that exist •

Affidavits that

aware

you

and

applicable,

if

any

between you and the corporation are not in

any financial

of an\^ circumstances that will

difficulty

make you

and not

liable for

any

future claims resulting from past actions •

A statement of your intentions to avoid financial responsibility to any individual (1) to whom you have a financial responsibility; (2) whom you plan to divorce; (3) from whom you are attempting to

•

avoid possible action as a result of environmental damage

A statement declaring whether or not there are legal proceedings that are directed at you.

maximum amount of the

If

there are proceedings

claim

is

realized, then

and the

you

will

designate sufficient reserves outside of the proposed asset protection plan to cover this liability •

Confirmation that

all liabilities

or contingent liabilities have been

disclosed on the financial statements provided to the planner •

Any

currently existing facts of

which you

are

aware that might

render you subject to legal proceedings and result in claims against your assets

102

•

Names

•

Name of banker

•

Names

•

Copy

of at least three references

of

of

your

and bank account numbers

legal counsel

and your accountant

your and spouse's medical history

U.S. Expatriate

Handbook

•

Statements declaring

whether you have filed

Travelogue

bankruptcy;

ever: (1)

(2)

been

convicted of a crime, indicted, or

been the subject

of criminal investigation; (3)

Geneva

been the subject of an audit

by the

w„

hen

in

(5)

walk across the

I

conference at the

was

a speaker at a

Noga

used

alias

names;

(6)

have had problems related to alcohol or drug abuse

bridge to get to the old town (hut

not in winter).

been denied

entry to a foreign country;

Geneva and crossing

the lake, take a

IRS; (4)

•

Your

US passport number

and a

Hilton,

listing of

each

country visited within the right

on the

lake.

Geneva

is

in the

past three years French-speaking part of

•

Switzerland with a somewhat different culture than the

A statement regarding whether you have any

>^

financial interest or

German

signatory

and

Italian speaking parts.

train ride

Geneva

is

to take the

to Paris, just

A nice

bank or other

TGV from

• is

US

A complete listing of present insurance policies

hours. If you like ice cream, double chocolate

financial

account outside the •

over three

power over any

Information regarding your

a local favorite.

interests in

pension and

profit sharing plans •

Information regarding your debts, contingent liabilities,

and potential inheritances

The bank may

also check with

various credit bureaus and

and

Dunn

Bradstreet.

« Banking and Investment 103

Investment As an expat,

the only thing that separates your offshore investment

needs from those back

Some

home is

availability of tracking

and advice.

overseas locations have expertise and the ability to follow your

you have US investments, make sure your advising firm has someone who understands US markets. With the Internet, you may be able to do much of this work yourself. investments which others do not.

If

The probability is high that you will have more disposable income than your counterparts back home, and it is important that these excess funds be well managed. Assessing market conditions and your

propensity to accept risk go a long

do

this.

It is

there are

not

way

in choosing the best

volumes of reading material available from many sources,

well as advice from local experts and your banker.

aware

means

that

whatever your approach

It's

as

useful to be

to investing, there's

no perfect

be overly concerned with finding the "perfect" one.

strategy, so don't

Whatever you do, the

earlier

you

start the better.

To

illustrate this, the

following charts estimate the effects of systematic savings:

Accumulation

at

7% Return

Monthly

Age

Savings

25

Age

35

Age 45

Age

55

$200

$524,963

$243,994

$104,185

$34,617

$300

$787,444

$365,991

$156,278

$51,925

$400

$1,049,925

$487,988

$208,371

$69,234

$500

$1,312,407

$609,985

$260,463

$86,542

To Accumulate S250,000 at Age 65 Interest Rate and Monthly Contribution Starting

104

to

my purpose to provide extensive investment advice;

Age

5%

7%

9%

11%

25

$164

$95

$53

$29

35

$300

$205

$137

$89

45

$608

$480

$374

$289

55

$1,610

$1,444

$1,292

$1,152

U.S. Expatriate

Handbook

The following chart can also be useful in determining how much you can afford to withdraw from your investments /savings yearly. Assume

you have $100,000 and want

to

withdraw

take a portion of the principal. Let's

assume

6% and you withdraw 8%. Following last

all

the interest earned plus that

your rate of return

is

the chart, your "nest egg'' will

24 years.

How Long the "Nest Egg" Will Last (Years) Rate of Return on Investment

Annual Withdrawal Average

25%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

5

5

5

5

5

5

5

5

6

6

6

6

6

6

6

7

24%

5

5

5

5

5

5

5

5

23%

5

5

5

5

5

5

5

5

6

7

7

7

22%

5

5

5

5

6

6

6

6

7

7

7

8

21%

6

6

6

6

6

6

6

7

7

7

8

8

20%

6

6

6

6

6

7

7

7

8

8

8

8

19%

6

7

7

7

7

7

7

8

8

9

9

10

18%

7

7

7

7

7

8

8

9

9

10

10

11

17%

7

7

7

7

8

8

9

9

10

11

12

13

16%

8

8

8

8

9

9

10

10

11

12

14

16

15%

8

8

8

9

9

10

11

12

13

14

16

21

14%

9

9

9

10

10

11

12

13

15

17

22

13%

9

10

10

11

11

12

14

15

18

23

12%

10

11

11

12

13

14

16

19

24

11%

11

12

12

14

15

17

20

25

10%

13

14

14

16

18

21

27

9%

14

15

17

19

22

29

8%

16

18

20

24

31

7%

19

22

26

33

6%

24

29

37

5%

31

42

4%

47

3% Banking and Investment 105

106

U.S. Expatriate

Handbook

Chapl

11

Insurance and Estate Planning

Financial "^tanning for Life

Abroad

A, you make s

overseas,

it

preparations for your stay

would be wise

review your

to

insurance coverage and estate planning strategies

before

and make any necessary changes

you

leave.

Changes

in family

circumstance, level of wealth, or tax

laws

may require corresponding YouVe

changes in your estate plan.

worked hard to accumulate an estate, so it makes sense to protect your assets and to devise an estate plan that helps you or your beneficiaries hold on to it by reducing taxes and probate costs. Changes can be made from abroad, but

it is

much

do so from home, and knowing that your finances are

easier to

in order will give

you

important peace of mind.

You can expect

to

be

approached by numerous salesmen to sell

My lawyer said I didn't need

one...!

that

may

found

or

in the

may

you

who will

attempt

financial products

not be different from those

US. Not

all

of these salesmen

107

understand the tax laws and planning strategies used in the US. Be

warned: What

is

legal in

one country

not necessarily legal in the US,

is

especially in the area of tax law.

Insurance Life, health,

and

Insurance coverage

disability is

income

an important protection

you go abroad,

against calamity. Before

a

it is

you and your family good idea to review for

your insurance coverage thoroughly, as some aspects of your coverage

may

problem.

If

your

and has been at

made

not apply to claims life

abroad. Life insurance

insurance contract

in effect for at least

two

was

is

not generally a

US

written by a

years,

it

should pay your estate

death regardless of your location, subject to any policy

However, regarding

health, major medical,

and

made

outside the US.

If

restrictions.

income

disability

may be an

coverage, be sure to check with your carrier, as there

exclusion for claims

carrier

your company provides

you a health policy in the host country, you will probably be OK. Check with your employer. For property and casualty coverage your

homeowner's policy may not be effective the US. Again, be sure to check on this.

for insuring property outside

Kidnap insurance While many Americans

at

home

carry insurance coverage for virtually

everything in both their personal and professional safe to conclude that insurance against

the

list.

However,

for the

lives, it's

kidnapping

American executive who

is

worth careful consideration. This

assignment

is

several countries outside of

become

coverage

especially true

a

if

is

the

major security issue in

North America. In the

have shown an escalation of incidents

Philippines, Columbia, Pakistan,

on being victimized by

and

U.S. Expatriate

in Italy, the

overwhelming

involved. Consider the following scenario:

country leaving his office

is

Handbook

last several years,

Brazil. Obviously,

this sort of criminal activity.

occur, the financial fallout can be

108

this

in a politically volatile location of the globe.

Unfortunately, kidnapping has

statistics

is

generally not on

working abroad,

is

having an insurance policy that specifically provides definitely

probably

An

But

no one plans

when

it

does

to the families

executive in a foreign

suddenly confronted by three men, each

with firearms. scene. in full

He is forced into

A ransom and he

is

a vehicle,

which quickly

for his release is set at $1,000,000.

from the is

paid

released within 30 days. Fortunately for his family,

gentlemen had an insurance policy that

this

flees

The ransom

an occurrence. As a

result, neither

specifically

covered such

he nor his family suffered any

significant financial loss as a result of this criminal act.

On the flip side of the coin,

consider this scenario: Another

executive's drive to the office

is

suddenly interrupted

at a stop light.

Two men with weapons emerge from the car in front of him and force their way into his car, taking him hostage. A ransom for his release is months in captivity, the ransom is paid and he is released. Unfortunately, he had no insurance policy that specifically covered kidnapping, and as a result, the financial ramifications were overwhelming. set at $1,500,000. After

Scenarios like these usually catch their victims quite off guard.

Because ransom payments can run well over $10,000,000, the families

tremendous

of the victims often encounter

Even

actual cash.

if

the family

is

difficulty in raising the

in the top net-worth bracket,

financial assets are usually represented factories or inventory. Realistically,

through

its

real estate, buildings,

none of these

assets can be

transformed into cash overnight. To create cash, these assets need to

be either sold or borrowed against and This

is

this

can be a lengthy process.

why it is important to consider this additional

coverage.

Unlike other forms of insurance, policies that specifically cover kidnap

and ransom

are offered

Although the various coverage, the

important to

by only

policies

a limited

have much

number in

of companies.

common in terms of

premiums may vary considerably. It is therefore obtain more than one quote for such coverage. Because

these policies are administered individually, there are several key factors that • Is •

determine the premiums:

the policy for one individual or for the entire family?

Does the policy cover more than one incident within a 12

•

What

is

of kidnapping

month period?

the risk level of the specific country?

Insurance and Estate Planning

109

Does the policyholder(s) who

•

low

is

to

be insured maintain high or

visibility?

•

Does the policyholder(s) maintain

•

Do

regimen?

a certain security

the travel routes of the policyholder(s) constitute a security

risk? •

What

•

How much of a deductible can the policyholder(s) afford?

restrictions are applicable in the policy?

Without diluting the importance of these

factors, the

consideration for any ''Kidnap and Ransom'' policy

primary in the

still lies

The negotiating The policy should

expertise that will be utilized for hostage retrieval.

team

is

probably more important than the policy.

provide for both an experienced negotiator and the to

ensure that the hostage

is

facilities

necessary

returned unharmed. The negotiator

should be available to the insured within one day of the kidnapping,

and should be consistently available

until the matter

is

resolved.

Estate planning Estate planning strategies can vary greatly particular needs

and

intentions. For

primary consideration children

if

trusts for

is

depending on your

young couples with

children, a

assuring the financial well-being of the

both you and your spouse should

die.

Most parents use

on-going investment management and decision-making for

the children until they are sufficiently responsible to

manage

inheritance for themselves. For individuals with growing

their

and

substantial estates, the estate plan needs to be designed to reduce taxes

and probate

costs as well as provide a

mechanism

for the beneficiaries'

protection and guidance. For individuals with a sizable estate to make sure the funds go down the new spouse or others after their demise,

who

want

family bloodline and not to

a

a

QTIP

trust

is

chosen strategy. You need to be sure that your estate plan to

your present circumstances and future intentions

have accumulated

110

U.S. Expatriate

in

your

lifetime.

Handbook

often the is

best suited

for the assets

you

The way your property is titled and the type of property it is often determine the manner in which your beneficiary receives it. There

ways

three

to transfer

By operation

are

property at death:

of law

Most often, a jointly-held asset titled in the names of the decedent and co-owner will go to the co-owner as surviving owner at the decedent's death. Usual titling is ''tenants by the entireties" or "joint tenants

By

with the right of survivorship (JTWROS)."

contract

A named beneficiary will receive the asset under a contractual arrangement such as a

insurance or pension /profit

life

sharing beneficiary.

By will Property passing by will is usually subject to probate-the process whereby an accounting of these assets is made by the executor

with the local court of the decedent's domicile. Assets sole

name

titled in the

of the decedent individual will look to the dispositive

provisions of the will for distribution. Your executor will

accounting of the assets, and

paying out is

no

will,

settle all

will

remainder of the

estate. If there

to the intestacy

provisions of your state of domicile.

your will comes under

debts and expenses before

be distributed according

to the beneficiaries the

your assets

make an

If

you hold

a

US passport,

US regulations.

Review your will One

type of estate plan involves placing

means

the survivor gets

Although

this strategy

all,

is

assets in joint

may be

attractive in its simplicity,

if

it

will.

does have

both parties die together, the status of

not settled. Jointly-held property

flexibility as the

name, which

thereby eliminating the need for a

some problems. For example, the estate

all

may

reduce planning

survivor takes the assets as survivor regardless of any

tax savings provision in the will. In other words, tax-efficient estate

plans often require certain ownership structures. Joint tenancy

may Thus

may

or

not offer the most tax savings. it is

generally advisable to have a clear and legal will.

haven't as yet executed a

will,

do so before you

leave.

If

you

To make a valid

Insurance AND Estate Planning

111

vou must be of legal age, of sound mind, and free from undue influence. The will must usually be signed in the presence of a minimum number of witnesses (how many depends on the state in

will,

which

it is

being made). In

many

can be admitted to

states, the will

probate without the requirement of locating witnesses of the will

executed before a Xotan^ Public.

review

it

to

be sure

stiU reflects

it

with your attorney to be sure children,

you may w^ant

their guardian(s)

If

you already have

a will,

if

be sure

to

your wishes. You should also check

it is still

you have minor at who wiU be appointed

valid. If

to look carefully

should they be orphaned. You

making pro\isions for temporary- guardians

may \vant to consider

in the host countr\^ so that

the children are taken care of until they can be joined with their

permanent guardians

at

home.

For any foreign assets, you

may

or

may

may need

a foreign will.

Your stateside

w^ill

not be accepted or qualify- in a foreign jurisdiction.

Disinheriting a spouse or children

Some

ips

relf

change during the course of a

lifetime,

and some

individuals w^ant to exclude the inheritances of their spouse in an estate plan.

law^

Be aware of the law in your

state

if

you

are considering

Unless a pre- or post-nuptial agreement has been signed, state

this.

wiU

who

protect a spouse

is

being w^ritten out. For such

agreements to be vahd, each individual should be represented by separate counsel and

make

Many a well-intentioned

full

disclosure of his her respective assets. ,

pre-nuptial agreement has been put aside

because these two issues were not properly addressed. Taking against tfie

wiU of a deceased spouse

entitles the surviving

share of the decedent's estate. Each state has

its

spouse

to a certain

own legislation

regarding the percentages or amounts. Communitv' propertv' states

have

their

own approach

to these situations,

and should be reviewed

if

they affect you. Rev iew and update your estate plan with your advisor to

put matters into proper order before you leave.

Trust planning Trusts can be an important individuals. Trusts can be

component

oi estate planning for

implemented during your

many

lifetime or at

your

death; they can be funded currently or funded at a future time (at death, for example).

112

If

properly structured, trusts can reduce probate

US. Expatriate Handbook

The

costs.

trust

and

its

assets are not part of public record during the

probate process as are wills. Professional

management

of the trust

assets can continue without interruption.

you are stationed abroad, be aware that trusts are a common law phenomena and may not be recognized in a civil law jurisdiction. If

Gifting For

US citizens,

Form

709,

residents

should be

filed,

and non-resident and any

aliens, a gift tax return.

gift tax paid,

on an annual

following the close of the calendar year in which

donor

dies, the gift tax return

must be

filed

no

gifts are

later

basis,

made.

If

a

than the due date

for the donor's estate tax return, including extensions.

Power Most

of Attorney

states allow individuals to

them

appoint someone as their attorney in

some disability or incapacity. These powers terminate at death, at which point the will becomes effective. You may assign someone a general power of attorney giving the designee power to make all necessary legal decisions on your behalf, or you can limit the power of attorney to specific domains (for fact to act for

in the event of

example, only decisions pertaining to your real estate held in the US).

Determine

for yourself

which

fits

you

better.

While you are overseas, any power of attorney you have assigned pertaining to your US-based assets should be valid while of the country.

of

Should you wish

you

are out

power of attorney over any country, you will need to consult

to assign

your property based in a foreign

legal counsel there.

Living Will

Many states will

legally

honor an individual's written wishes

called a Living Will) regarding the extent to

measures are

to

be used to maintain

life.

which medical

(often

life

support

The family physician should

be aware of and have a copy of such a document.

you want this kind you will need to honored there and how it If

of advance directive to be valid in your host country,

determine whether such a document

needs

to

is

be legally registered.

Insurance and Estate Planning

113

Information needed for good planning In order to properly prepare an estate plan for you, your advisors will

need various data and information. The following

is

a

list

of data

often requested, along with an Estate Planning Questionnaire.

You can

speed up the process by having such data and information available. •

Financial statements for the business for the last three years (for

business owners only)

and business the

•

Income

•

Gift tax returns for the last three years

•

Fiduciary returns for the last three years

•

Investment records for the

•

Wills

•

Trust agreements created

•

Marital agreement

•

Partnership or corporate agreements that affect you as an

tax returns for personal

last three

by you or

last three

years

years

for

you

(or

your family)

any)

(if

individual (for business owners only) •

Buy-sell agreements, purchase options,

and employment

contracts (for business

owners only)

•

Insurance policies

health, disability, etc.)

•

Household inventory

•

Any

appraisals

(life,

done

for property

and annuities

covered under insurance

policies (rings, silver, collections) •

Any

other agreements which

would

affect

your financial

planning •

114

Benefit data (supplied

by your employer), including:

-

Group

-

Salary death benefit plans

-

Stock option /stock purchase plans

-

Pension plans

-

Profit sharing plans

-

Bonus /Incentive plans - Deferred compensation plans

-

Salary continuation plans

-

Hospitalization /Major medical plans

-

Post retirement benefits

-

Other benefit programs

life

U.S. Expatriate

insurance plans

Handbook

Estate Planning Questionnaire

Name

Age

Client

Spouse Child Child Child

Fair

Market Value Titled

In:

Sole

Joint

Spouse's

Children's

Name

Name

Name

Names

Assets

$

$

$

$

Cash /Cash Equivalent

$

$

.

$

$

Other

$

$

.

$

$

Stocks

$

$

$

$

Bonds

$

$

$

$

Mutual Funds

$

$

.

$

$

Residence (Equity)

$

$

.

$

$

Real Estate (Equity)

$

$

$

$

Art /Collectibles

$

$

$

$

Jewelry

$

$

.

$

$

Amt.) $

$

.

$

$

$

$

$

$

Life Insurance (Face

Closely-Held Business

$

$

Pension /Profit Sharing

$

$

IRA

$

$

$

$

Keogh

$

$

$

$

Tax Sheltered Annuity

$

$

$

$

Other (Specify)

$

$

$

$

Totals

$

$

$

$

_

.

Insurance and Estate Planning

115

Estate settlement

and administration you should become

In addition to updating your estate plan,

with

how an estate is

familiar

and administered at death. This is known you are named an executor or personal

settled

as the probate process.

If

representative in a will,

you

will

be responsible for a great deal of legal

For example, there are forms to be filed and possible taxes to

activity.

be paid. The more you can learn about the process Stateside, the easier it

will

be for you to manage should you have to do

this

while abroad.

Being familiar with the process will also help you manage, organize,

and keep records

your

of

way that will facilitate the proper event of your death. What follows is an

affairs in a

execution of your estate in the

overview of the probate process and the actions that generally need be taken in settling an

The gross decedent

amount funeral

estate.

estate includes the value of all property at death.

reduce

to

to

owned by

the

A number of deductions can be taken from this it

to the taxable estate.

Such deductions include

and administration expenses, casualty

and

losses, debts

mortgages, and deductions for property passing to a surviving spouse or charity.

The for

estate tax return

US citizens

(Form 706)

or residents

death unless an extension

decedent must be

filed

is

used

and must be

is

granted.

and pay the estate tax within nine months after

to report filed

The

estate tax return of a resident

with the IRS Service Center that serves the

which the decedent was more than one executor or administer,

domiciled at the date of death.

in

the return

send a

certified

copy of the

will for a

state is

must be signed by

In addition to the tax return, the executor or administrator to

there

If

US resident with a

is

all.

required

tax return to

the IRS. Failure to

pay the tax with the return incurs a penalty

one percent of the estate tax

liability for

remains unpaid to 25 percent and penalty. Failure to

file

is

each month that the tax

in addition to the late filing

the estate tax return,

pay the

each constitutes a misdemeanor punishable by $25,000,

imprisonment of not more than one

tax return

is

tax, or

keep records

a fine of not

year, or both.

more than

If

the estate

not filed on time, the IRS will impose a penalty of five

percent of the estate tax liability per month,

116

of one-half of

U.S. Expatriate

Handbook

up

to 25 percent, unless

delay If

is

due

you have

fiduciary,

Travelogue

to reasonable cause.

the responsibility of a

being out of the

country and unable to perform

your duties

may

or

may

not

provide a sufficient reason for not

Zurich

filing

on

deemed If you fly airport,

into Zurich's (Klotin)

you can catch a

downtown

there. I

train to

usually stay

near the train station because the business district distance. I

is

within walking

failure to file is to fraud, the

penalties range from 15 percent to a

maximum of 75 percent.

Form 706NA is

filed for

resident aliens.

An estate tax

return

must

match

non-

by

also be filed

non-resident alien

a certain (football)

If

be due

if

estate situated in the

watched the 1990

World Soccer

time. to

part of the

US exceeds

minimum. The

return

of a non-resident (whether a

between Germany and Argentina

citizen or not)

with a friend and his family at

the IRS Service Center in

must be

Philadelphia, PA. their

home following

a

a wonderful

was

If

filed

with

the decedent

a non-resident citizen, the

dinner. Zurich, being in the

following documents must be

German-speaking part of

filed

Switzerland, was mostly rooting

•

with the return:

An inventory of property and

for the

match.

German team who won

A wonderful train

from Zurich

to

a schedule of liabilities,

the

claims against the estate,

and expenses of

trip is

administration filed with

Milan, through the

the foreign court

Swiss valleys and countryside, up certified

over Gotthard Pass,

Lugano, then

to

down

into

Milan. Get the

Express train and not the local

•

Any

by

and

a proper official

return filed under a

foreign inheritance or

death tax act and certified

by

a proper official

milkrun. estate

is

(if

the

subject to such a

foreign tax)

Insurance and Estate Planning

117

•

A certified copy of the will

• If

the executor

is

to

be represented by someone

else before the

power of attorney filed on Form 2848 and signed by the fiduciary. Form 8821 (Tax Information Authorization) is to be used to authorize any designee to inspect and / or receive confidential information for the type of tax and years listed on IRS, a

the form.

Summary The information

that

some

ITl try to give

you need

to

know

is

on

a case-by-case basis but

guidelines. Get an international attorney,

accountant, and banker both stateside and in your host country possible.

Below

is

a

summary

of

some

you will need to order while you are abroad.

of the issues

consider while putting your finances in •

if

Wills -

Find out whether the country is

is

common law or civil law

(there

a difference).

US will for US property.

-

Have

a

-

Have

a foreign will for certain properties like real estate held

outside the US. •

•

•

Living Will -

Check local law once you

-

Find out whether you can give an advance directive there.

Power

are there.

of Attorney

-

Should be good

for

US based

-

Check local law

for

any property based

assets.

Asset Protection Trust -

You may want protection of your especially if you are employed in political

environment,

Check with

a major

U.S. Expatriate

bank

Handbook

assets in a strong jurisdiction, a country

weak banks and to see

protection worth the cost /fees?

118

in foreign country.

if it

which has weak

unstable currency.

makes

sense. Is the

•

Currency -

Find out

how

new host •

the

US dollar stands

against the currency of your

country and whether there

is

much

fluctuation.

Compensation -

Find out whether you will be paid as a local in foreign currency

on US payroll or have split employment contract, paid US dollars on US contract and part in local currency on

or carried part in

foreign contract. •

Insurance -

Life:

Should be okay with

two years -

Health /Disability Income: Check with carrier before you leave.

Company group -

US contract if policy is more than

old.

coverage should work.

May not cover property accompanying you

Property / Casualty:

on foreign assignment. •

Estate Plan -

•

go; a

US plan should

cover most assets.

Income Tax -

•

Review before you

Have someone who understands both

countries.

Personal Investment -

Some

locations

make

someone competent

coordination with

there

and here

to

US difficult.

pay attention

Find to

your

holdings. •

Pension/Profit Sharing Benefits -

Find out whether you will be forced to participate in foreign plans,

what

will

happen

to that

plan

(frozen in that country, portable,

when you come home

what

currency, taxability

on

accumulation, contribution and distribution?). •

Banking -

Determine your banking needs and compare with your bank's capabilities.

Compare

costs

and

services; big international bank,

local regional bank, private bank.

Insurance and Estate Planning

119

I

120

U.S. Expatriate

Handbook

Chapter

12

Coming Home

Part Parting

Words

A

ny book offering advice about accepting

work assignment abroad

a

is

not complete

without some discussion of what returning

home can be like. When you headed out on your new adventure, you prepared yourself for possible difficulties

upheavals. is

how

be.

and emotional

What you might not be

difficult the ''re-entry''

However, the

difficulties

expecting

process might

can be lessened

if

they are anticipated and you take action

while you are ^/

chapter

/

is

still

abroad. This

intended to help you with

this process.

•/

Returning

home from your overseas

assignment won't be as severe as an astronaut re-entering from outer space, j

'

jf

you and your family. After living ^^^^ abroad, however good or bad the experience was, you and yours won't be the same when you arrive home. You should realize that many things have changed while you've been away, starting with yourself. The language, your schedule,

//^

Re-entry can bring

own

its

set of problems.

but there will be some adjustment both for

your manners, your living arrangements, and

121

.

most of

all,

US version. Your

your job have been different than the

family has experienced changes also. You

all

have

finally

become

comfortable in dealing with local food, customs, daycare /baby-sitters, school, servants,

school's not so

and

bad

The children have made friends, and they have substituted the local snack version back home. All in all, although you

entertaining.

after

all,

of choice for their favorite

and your family may have begun the assignment part your lives have

The

fact that the

To get things

now

adapted

to

what was once

overseas assignment

started,

in chaos, for the

over

is

you begin compiling

is

most

foreign.

often bittersweet news.

the endless

lists all

over

you are returning to your home country, you know something about where you are going. No new language to learn, no strange foods, climate, schools, or again, this time in reverse. But at least this time,

transportation.

change

is

It

will

the status

be work, but not as

quo

You wind down your

in international

duties

on the job,

many

if

uncertainties.

.

work.

file

your

final reports,

and

begin the round of good-byes with your international friends. The family begins the same processes in their

lives.

Your spouse

terminates her duties and memberships and the children's school notified to send the records. Decisions are

and clothes

You

to take

finally arrive

and what

home

made on what

is

furniture

to leave behind. You're out of here!

to the old

homestead or

a

new

one.

you may find that it's not the same as you've long imagined. When you are abroad, you carry a perception of "how things were" back home. When you return you discover that it's somewhat like going back to a high school reunionyour best friends have not only changed physically, but mentally. You

Unfortunately,

upon your

return

same interests, perceptions, outlooks, or experiences you did when you were friends and school mates in years past. don't have the

Your old friends back home may international experience. After

fit

you

into this category following listen to the

same

as

your

local gossip, play

same country club, visit the old neighborhood, it's just not the same somehow. It has nothing to do with your feeling superior or more rounded. Like it or not, you've been reshaped, and it may take awhile to be shaped back into a US version again. The longer you've been away, the longer it usually takes to successfully come home. golf at the

122

U.S. Expatriate

Handbook

I

As

the working partner, your return to the

be not quite as you pictured

They've possibly restructured or

it.

redecorated. Your former office has a

managers have changed along with

new

look with a

new

The

face.

Your overseas

their objectives.

may not be numero uno on their priority list. Procedures may have changed. Profits may have been less than expected. Several of your colleagues at the home office may have project

may

company headquarters may

or

taken advantage of an early retirement package offered by your

company

an

in

effort to

downsize.

You should be assessing your position at the company. They remember you when-you remember them when. Make sure international experience is remembered by the company and

that fits

your

into

Many multinational companies include career a way to bring your needs and expectations in line with

their future plans.

counseling as

the current realities of your this benefit,

company

you might request

If

your company does not

it.

At home your family finds many changes. Even the

local grocery store

has become a super store on the edge of town with a

new

offer

new manager and

systems. They have replaced the old check cashing card system

with a computer system. Even though takes time to turn

on the water,

gas,

it's

and

good

to

electricity

be home,

which power

appliances and conveniences. The kids return to find that friends have

moved and

those

who have stayed

it still

some

all

the

of their

are ''different" than

what they remembered. In fact, the whole community may not be quite like they remembered it. The hangouts they used to haunt have been taken over by the younger crowd. The new "in" places are unfamiliar. TV shows have come and gone, new pop artists have pushed aside the familiar. The old shoes that were so comfortable three years ago aren't comfortable today. In fact, they're out of style

and don't even

Time marches

fit

anymore. Nothing

is

the same, neither

you nor

they.

on.

Coming Home 123

Best advice-plan to return before you leave The successful re-entry process begins with the plans you make while still in your own backyard. One of the best things you can do to

many

of

your re-entry

regularly with

all

your home-based support systems while you were

alleviate

difficulties is to

have communicated

abroad. Communication between you and the people in your

between your partner and friends

the best safety net

is

Keeping

proliferation of electronic

made

it

you can

home

relatively easy to

developments and

to continue to

in discussions regarding strategy

contact person with

your family also.

set

up before you

their

leave.

office is vital.

keep current with home

in

office

and opportunities. Determine

whom you can share information. your neighborhood? Did the

local

Do

mail, faxing,

they have a

new coach

Encourage

news and

government

an excellent way

is

for all of

you

to follow the latest ''hot"

"cool" trends.

Two-way communication is culture shock

you

the best

will experience

way

upon

to alleviate the reverse

returning. Travel

opportunities during your assignment might be used to return

up on

things. Frequent trips

back

keep you updated on new changes,

your vacation time with a

home

or manager? Again the use of e-

and the World Wide Web

keep in touch with friends back home and

will

a

How did the local teams do during the season and in the

playoffs?

to catch

e-

maintain a presence there. Participate

maintain communication with their friends back

new

What's

change?

to

to

between the children and

The global communications media such as faxing and

with your

in touch

mail has

friends,

office,

visit to

to

go

home may be

to the plant,

faces,

and

when

priorities.

disappointing

when

home

possible,

Taking

contrasted

ancient ruins but will certainly keep alive the realities of

your home base. Assuming you have stayed

in close

communication

with both your job and your neighborhood, your re-entry process should be

less chaotic.

Once you know you will be leaving and the date is on the calendar, to wind things up quickly. A long, drawn out departure will be difficult for both you and your overseas friends. You will begin to

124

U.S. Expatriate

Handbook

try

wonder

if

you

are ever leaving

to all

will they.

close this chapter in

you

parties.

your co-workers, your neighbors, your

children's friends. Grieve for the loss of the

that tie

Delayed good-byes

Attend your farewell

just defer the re-entry process.

good-byes

and so

your

life.

to this assignment.

Realize that the return

Remember

friends,

good times so

Try to resolve

all

it

Say your

that

your

you can

the outstanding issues

move

well and

home will have unexpected

on.

turmoil even in the

and difficulties. The reconnection process will take time. Don't minimize the effects this will have on you and your family. While you are dealing with the uncertainties of your job and finances, your spouse

best of times.

The readjustment process

will be fielding

will present challenges

your concerns along with hers and the

children's. Try

not to be unrealistic in your expectations that everything will return to

normal automatically. Effective communication among

members

is

all

family

a necessity not to be overlooked.

may become depressed and despondent. Their immune systems can break down and they may experience frequent illnesses. They may have anxiety about school and their peer relationships. On the other hand, now that they are back home, they may want and expect more freedom. Moving from country to country as a teen may be turbulent at best and possibly may have colored your children's self Children

esteem.

under It

may

It is

important to continue a dialogue with them especially

difficult circumstances.

take a full cycle of seasons and holidays for the reconnection to

the old neighborhood to finally take place. After the family

becomes

re-involved in local functions, the children settled in school, old and

new relationships with

friends

and neighbors

rebuilt,

and routines

You and your family will never be quite the same as before you left home nor view the world quite the same again when you return. Who's to say-you may yearn to do it all again. Certainly you will have grown mentally established, the domestic setting often

comes

together.

and emotionally from the experience.

Coming Home 125

126

U.S. Expatriate

Handbook

A Few Useful Referexces

BOOKS General Information Black,

J.5.,

Gregersen, H.B., Mendenhall, M.E.

(1992). Global Assignments.

San Francisco:

Jossey-Bass PublishersEssex,

W. (19%). YJorking Abroad. London:

Bloomsbiir\' Publishing.

Xwanna,

G.I.

You Should

Americans Traveling Abroad: What

Know Before You Go (An

International

Traveler's Resource Guide.

World

Travel Institute Press. ISBN: 0-962382-04-3. Piet-Pelon, X.

and Hornby,

B. (1992).

Guide

to

Living.

ME:

Women's

Overseas

Yarmouth,

Intercultural

Press, Inc.

ISBN

1-877864-03-6.

Savage,

P

(1988).

The Safe Travel Book.

New York: Surfing ihe wtb?

\

Lexington Books.

www.globalassignment.com

127

Twinn,

B.,

Burns,

P.

London: Kogan

(1993). The Expatriate's Handbook.

Page Limited. Tsang-Feign, C. Keeping Your Abroad.

Life,

Hong Kong: Hambalan

Family, and Career Intact While Living

Press.

Career Considerations Gomas,

Managing

C. (1994).

in a Global Organization.

Menlo

Park,

California: Crisp Publications, Inc.

Guy,

v..

Mattock,

Kogan Page

(1996). The

(1990). The International

Businesswoman of the 1990s.

Praeger Publishers.

Salacuse, J.W.

Making Global

about Negotiating Abroad. Storti,

New International Manager. London:

Ltd.

Rossman, M.L.

New York:

J.

Deals:

What Every Executive Should Know

Random House.

ISBN: 0-812920-90-2.

C (1997). The Art of Coming Home. Yarmouth, ME: Intercultural

Press, Inc.

ISBN

1-877864-47-1.

Cross-Cultural Communication Axtel, R.E. (1993). Do's and Taboos

Wiley

Around

the World.

Around

the

New York: John

& Sons, Inc.

Axtel, R.E. (1997). Do's and Taboos Business.

World for

Women

in

New York: John Wiley & Sons, Inc.

Axtel, R.E. (1994). The Do's and Taboos of International Trade.

John Wiley

& Sons,

New York:

Inc.

Axtel, R.E., Healy, J.R,

and Fornwald, M.

Preparing for your Trip Abroad.

(1994). Do's

and Don't's of

New York: John Wiley & Sons,

Inc.

ISBN:

0-471025-67-4. Braganti, N.L., Devine, E. (1992). European Customs and Manners.

York:

Meadowbrook

Hall,

W.

(1995).

New

Press.

Managing

Cultures.

New York: John Wiley & Sons.

Kohls, L.R. (1996). Survival Kit for Overseas Living: for Americans

Planning

to

Live and

Work Abroad. Third

ed.

Yarmouth, ME:

Intercultural Press, Inc. ISBN: 1-877864-38-2.

Lewis, R.D. (1996).

When

Cultures Collide.

Publishing. 128

U.S. Expatriate

Handbook

London: Nicholas Brealey

Mole,

J.

(1995).

Mind Your Manners. London: Nicholas Brealey

Publishing. Storti, C. (1997).

The Art of Crossing Cultures. Yarmouth,

Intercultural Press, Inc.

Walmsley,

J.

ISBN

ME:

0-933662-85-8.

(1986). Brit-Think Ameri-Think.

Edinburgh: Harrap Books Ltd.

Family Matters Kalb, R.

ME:

and Welch,

P.

(1992).

Intercultural Press, Inc.

Moving Your Family

ISBN

Overseas.

Yarmouth,

1-877864-14-5.

Pascoe, R. (1993). Culture Shock! Successful Living Abroad,

A

Wife's Guide.

Singapore: Times Books International. Pascoe, R. (1994). Culture Shock! Successful Living Abroad, Guide. Singapore:

A Parent's

Times Books International.

Newletters, Pamphlets, and Articles Centers for Disease Control. Health Information for International

Washington, DC:

Travelers.

US Government Printing Office. You can also call the

CDC hotline at 404-332-4559. The Adams Report: Global Assignment Americans Abroad. ISSN: 1093-2828.

Newsletter published 9 times a year covering a broad range of topics.

For subscription, write

Chatham Tower IH,

Pittsburgh,

PA 15219.

Available on-line: www.globalassignment.com.

US Customs. Know Before You Go, pamphlet. Contains information about US Customs regulations and procedures. Single copies are available from any US Customs office abroad or by writing to US Customs,

PO Box 7407, Washington, DC

20044.

US Department of State. Key Officers of Foreign Service Posts. Washington, DC: US Government Printing Office. Provides a listing of addresses and telephone numbers of US embassies and consulates abroad. Transatlantic American: The

Magazine for Americans

Published since 1995, this magazine in

is

Germany, France, The Netherlands,

in

Europe.

available at selected newsstands Italy

and the

UK and can be

ordered from other news agents by quoting ISSN 1363-2116. Sub-

Worldwide Publications, 155 Maybury Road, JR, United Kingdom. Tel. +44 (0)1483 776141.

scription agent: Barker's

Woking Surrey GU21

5

A Few Useful References

129

Internet General Information Expat Forum http ://\\rww. exp atf orum.com Sections include Job /Careers,

(including

Money and

Web

Links, Chat,

Message Board

Personal Finance, Jobs /Careers, Regions, Expat

Experience, and Travel), Bookstore, Internet Search (including weather,

numerous search

stock quotes, language translator,

on

cost of living, electronics

engines). Articles

and appliances, telephone,

successful assignments, traits

and habits

time, ideas for

of successful expats.

Expat Exchange

http://www.expatexchange.com

An interactive guide

''being built

by expats

for expats.''

Chat forums,

job searches, tax information, real estate, travel tips, professional services,

and more.

Intercultural Press, Inc.

http://www.bookmasters.com/intercIt/main_cat.htm Publishes books and other materials

(e.g.

videos and simulations) on

intercultural relations, practical concerns of living

and working

in

foreign countries. Categories include Training, Exchange, Reading,

Education, Interacts (materials looking at the dynamics of specific culture combinations such as

US /Japanese),

International Business, Diversity, Simulation

catalogue:

PO. Box 700 Yarmouth,

Relocation, Social Issues,

Games, and Videos. For

ME 04096; 207-846-5768; 800-370-

2665; fax 207-846-5181. E-mail: [email protected]

Overseas Digest: e-zine for

US

Expats

http://overseasdigest.com/ Sections include Educating Your Children, Finding a Job, Your

Money

and Taxes Overseas, Legal Matters and Emergencies, Overseas Organizations, Safety and Security, Medical Matters, Returning to

America. The financial section even includes a "Salary Calculator"

to

help you determine your "real" earnings based on the cost of living in

your host

130

city.

U.S. Expatriate

Handbook

The Escape

Resources on the Internet

Artist: Expatriate

http://www.escapeartist.com/expatriatel/expatriatel.htm Sections include jobs,

embassy pages, world

immigration resources, expats, but

still

links,

and

press, bookstore,

tax information. Written for

UK

useful.

The Well Informed and Advice

Traveler:

A Compendium of Travel Information

http://www.armchair.com/info/netinfo.html Includes general information, tourist bureaus, tips on air travel.

Driving abroad, customs, consulates, and visas, personal security, health,

and information

The World

Fact

specific to a

number

of regions

and

countries.

Book 1996

http://www.odci.gov/cia/publications/nsolo/ Public information about geography, people, government,

and infrastructure of many countries officials (site

for use

economy

by US government

maintained by the CIA).

Career Considerations Arthur Andersen International Executive Services http://www.arthurandersen.com/bus_info/services/ies

A large collection of valuable information and links. Sections include Library (articles on a wide variety of topics from taxes to

compensation packages the

more

likely to

significant legislative

Hot Topix

lists,

(articles

on some of

developments from around the world

impact expatriates). Living Abroad

FAQs; schools, reading links),

to repatriation).

(info

on

specific countries;

popular publications available online,

and Managing Global HR.

Grant, Linda (1997). "That Overseas Job Could Derail Your Career." Fortune's Smart Managing, Fortune Text Edition.

dated April

14, 1997.

Found December,

1997;

http://pathfinder.eom/@e37ePRMFqEglAQNlr/

fortune/1997/970414/you.html Vessels, Jennifer (1997).

"How

to

Find a Job

at

Home After an

Overseas Assignment." National Business Employment Weekly. Found

December, 1997. http://www.nbew.com/outside.html

A Few Useful References

131

Family Matters

US

Department Office of Overseas Schools

State

http://www.state.gov/www/about_state/schools/ Includes links to

many

hiterwww Schools

WWTeach

overseas schools, regional associations,

Registry,

and other

sites of interest.

International Education and Schools

http://members.aoI.com/wwteach/Teach.htm Contains

links, information, lesson plans,

and more.

Health Care Overseas Medical College of Wisconsin International Travelers Clinic http://www.intmed.mcw.edu/travel.html Offers general information about health risks abroad,

recommendations about preparing

a medicine kit for travel,

information about specific diseases and immunizations for them,

environmental hazards, and advice about traveling while pregnant.

Consular Assistance and Legal Considerations

US

State

Department Travel Warnings and Consular Information

Sheets http://www.stolaf.edu/network/travel-advisories.html

Maintained by mailing

list,

St.

Olaf College in Minnesota. To be added to the

send a brief message containing the word ''subscribe"

to:

[email protected]

Electronic Embassies

http://www.embassy.org/embassies/ List

and

links to all the embassies in Washington,

web-based resources where

DC with links to

available.

The Embassy Page http://www.embpage.org

GlobeScope Internet Services' extensive

web

sites.

132

U.S. Expatriate

Handbook

list

of

embassy and consulate

Personal Finances Roha, R.R. (1996). 'Tinancial Facts for Expats." Kiplinger Online, Vol. 50,

No. 2 (February).

http: / / www.kiplinger.com / magazine / archives / 1996 / February /

expats.html

Expatriate Organizations Federated League of Americans Around the Globe (FLAAG)

An independent, to serving the

non-profit

and non-partisan organization dedicated

needs and interests of

all

American

citizens living or

working outside the US. Programs include Liaison with the US Congress and the Administration,

News and

(clearinghouse, magazine, newsletter,

and

and

Information

briefs).

Worldwide Health

Life Insurance, discounted International Telecommunications,

Global Networking,

Member Savings

for Hotel, Car,

and Moving,

Absentee Voting Information and Assistance. Membership cost

is

$40/

$55 for family.

FLAAG 2056 National Press Building

Washington,

DC 20045

202-628-5488

FAX: 202-628-5485

American Citizens Abroad (ACA) 1051 N. George Arlington,

Mason Drive

VA 22205

RO. Box 321 CH-1211

FAX: 703-527-3269

Geneva 12

e-mail: [email protected]

Switzerland

Phone and Federation of American

Fax: +41 (0)22 347-6847

Women's Clubs Overseas (FAWCO)

http://www.fawco.org

There are 65 clubs in 34 countries. These clubs are particularly active in issues regarding

US

citizens

and

their concerns, education,

and

environmental protection. Association of Americans Resident Overseas

(AARO)

http://member.aol.com/aaroparis/aarohome.htm

A Few Useful References

133

134

U.S. Expatriate

Handbook

14* our:

Farting

Words

Preparing to Go TiMEABLE AND Checklist

Initial

-

Actions

Coordinate agreements concerning your

Human

overseas assignment with the

Resources department of your company. Li

/y^

If

appropriate, provide

HR with

information required

for:

Passports Visa /work permit

requirements Flight arrangements for orientation visit

and

car hire

requirements

Arrangements

for

the transportation of

your unaccom-

panied personal effects

and pets

Housing /schooling requirements in

your host location Expect the renters

to

put some wear and tear on your house while

you 're away. 135

Decide What To If

you

If

you intend

Do With Your Home

check the lease and give the appropriate notice

rent,

to leave

your home empty:

Check your buildings and insurance coverage Prepare your house for inactivity (drain

down water,

disconnect

gas, central heating, etc.)

Advise your mortgage lender

Make

If

security arrangements for your

home

Arrange

cleaner, gardener, as necessary

Arrange

for

you intend Choose

someone

to rent

to

check the property on a regular basis

your home:

a reputable rental agent to

Employ an

market the property

for

you

attorney to study the tenancy agreement

Nominate managing agents Get consents from mortgage company, insurers

Q

If

you intend Choose you

to sell

your home:

a reputable real estate agent to

Employ an

market the property

attorney

Organize a Power of Attorney in case the sale before your departure

6-12

for

is

not finalized

Weeks Before Departure

Be sure

legal

Check

paperwork

for traveling is done:

that passports are

up

to date;

make

application

if

necessary

Get a supply of passport-size photos

Apply

for

to take

with you

any necessary visas /work permits

To protect your health while overseas:

Arrange medical and dental check-ups

Go

over vaccination records with the doctor and arrange extra shots if required

Arrange

136

for

U.S. Expatriate

an AIDS

test if

your host country requires

it

Handbook

I

If

you take prescription medication, make arrangements with

for obtaining a supply of these medications; ask the doctor to write a letter documenting your need for these medications

your doctor

If

you or

a

member of your

family has any special medical

conditions, ask your doctor for a copy of the pertinent medical

records for use by your doctor abroad

Consult with your doctor whether you will need any preventative medications such as quinine where you will be living. Make arrangements to acquire any if needed Notify your children's school of their departure Notify your banks

Q

If

you

receive

government benefits

Veterans' benefits)

(for

make arrangement

example. Social Security or

to

have your money sent

to

your new location

Look over your will and be sure it still reflects your wishes; arrange to meet with your attorney to make any desired changes or to make a will if you don't have one yet

Q Q

Arrange

a

power

of attorney,

if

required

Advise any insurance companies with

you

whom you have policies that

moving to live overseas (Companies have been known to pay out when they have not been so advised)

are

refuse

to

Decide what to do with your pet(s)

Q

Decide what to do with your

Arrange If at all

for

car(s)

moving companies

possible,

make

to carry out

pre-move survey

a "reconnaissance trip" to

your new

location;

while there, you might choose your house, a bank, and /or school(s) for

your children

Preparing to

Go

137

4-6

Weeks Before Departure

Consider the need for independent tax /financial advice on your status as

an expatriate

Arrange with the post

office for

Send out change-of-address in touch

your mail

cards;

be forwarded

to

make arrangements

for staying

with friends and relatives

Cancel subscriptions to book clubs, magazines Notify credit card companies

Arrange

Make

flight tickets, hotels, car hire

a detailed inventory of the contents of

value and age (You

may want to

your home including

take photos for insurance

purposes)

Consider opening a safe deposit box in which

documents and valuables while you

are

to store

important

away

Plan what things to take with you overseas and what things to leave behind. Consider whether

storage and

Make

final

make any

you want

to

put some things in

necessary arrangements

arrangements with moving company

Collect copies of legal

documents such

for

moving day

as marriage, birth,

adoption, divorce certificates to take with you Collect copies of important

documents you may need with

you (insurance

medical records, optical and /or

certificates,

medicinal prescriptions, school records)

Deplete food in your kitchen cupboards and freezer

Deplete stocks of alcohol

Contact your local voter registration office

an overseas elector

138

U.S. Expatriate

Handbook

if

necessary to register as

1-2

Weeks Before Departure you will need to keep with you when you passport, visa, work permit, tickets, money, travelers checks,

Sort out those items travel:

currency, credit cards, driver's license, essential medication,

vaccination certificates, valuables, jewelry, address book, things for children to suitcases

do on the

may not

flight, at least

one change of clothes (your

arrive with you)

Drain fuel from lawn

mower

Cancel milk /newspaper deliveries

Advise

utility

companies: gas,

electricity,

water, telephone

Dispose of houseplants Defrost refrigerator /freezer

Pack the possessions you are taking with you

Preparing to

Go

139

Notes

140 U.S. Expatriate Handbook

Notes

Preparing to

Go

141

Notes

142

U.S. Expatriate Handbcxdk

About the West Virginia University College

w.

est Virginia University

has produced

successful business graduates for

more than

100 years. The College of Business and

Economics, created in 1951, has held

AACSB-The for Management

continuous accreditation by International Association

of Business

Education and recently earned separate

& Economics

accreditation status for

program, signifying

it

country Fewer than

11

its

Accounting

as one of the best in the

percent of

all

accredited business programs have earned this distinction.

The College offers two undergraduate degrees and five graduate degrees: •

B.S.B.A. Accounting, Marketing,

Management, and Finance • B.S.

Economics

•

M.B.A. Business Administration (including Executive M.B.A.)

•

M.S. Industrial Relations

•

M.P. A. Professional Accountancy

•

M.A. Economics

•

Ph.D. Economics

The College of Business and Economics located on the downtown campus in

Morgantown

in a

modern

four-story building

with excellent technological

computer lab lecture halls.

^

is

facilities,

a

and multi-media The Executive M.B.A. program for students

and some undergraduate courses are offered via distance learning at nine sites in West Virginia from the Mylan Distance Learning Center and the Joseph E. Antonini Dean's Suite and Distance Learning Classroom. For more information about the College of Business and Economics, call (304)293-7834 or visit the

web

site at

ivww.ivvu.edu/-colbe.

About The Author John W. Adams International Consultant

John

Adams began his

career in sales

and

marketing of US-based financial products.

He next joined

the Trust

Department

Mellon Bank where he was

in

of

both the

business development and planning sections, accountable for solving business, estate,

and tax problems. During

this

period, he developed an expertise in international estate planning

with businessmen and

working

their advisors.

Subsequently, he started his

own

consulting group specializing in international estate

and

financial planning.

An adjunct professor in the West Virginia University College of Business and

Economics, Mr.

Adams specializes in

deferred compensation planning for international executives

owners based

in the

and business

US and

abroad. His

on the interplay adaptation and properly

current research focuses of cultural

structured financial rewards as the basis for a successful tour for executives

working abroad.

He

has lectured on matters pertaining to

life

insurance, tax, and estate planning

in the

United States and abroad.

He is

the author of Selling the Family Business

and Smart Marketing for Non-Profits. He also publishes Global Assignment,

Americans Abroad-The Adams Report, an international newsletter covering issues of concern to expatriates.

www.gIobaIassignment.com

lis^ by PublisWd bi West Virginia University C'lllege of

Business

& Economics

0966317106