It may be interesting to receive news that you have been offered a foreign mission. In most cases, you stand out for your exceptional contribution and get an excellent opportunity to advance your career. Your family might be excited too. Living in another country, experiencing a different culture and seeing things that you only know from the pictures is a great opportunity for many people. However, there are certain problems.
By increasing your daily life and taking into account the oceans, time zones and cultures, the adjustment can leave you disoriented and perhaps a little disappointed. Knowing as much as you can about what to expect in your new home will help a lot. Among the many questions you will need to answer, one of the most important is how much everything will cost?
Cost of Living Calculators
Comparison of many basic everyday items, such as a tube of toothpaste, milk, lunch, the price of a movie or car rental, can be quite simple. However, there are some surprises. In some expatriate destinations, some goods and services may cost significantly more than you would expect. Taxes on goods such as gas, cigarettes, alcohol, and imported goods can be used to finance government programs, such as health care, public transport systems, and communications infrastructure.
Labor Award
For some, the word "difficulties" conjures images of polar explorers or early settlers heading west in their covered wagons. In the world of corporate relocation, “difficulties” encompass many factors, such as the availability of certain goods and services, political and social freedoms, language barriers, health care, pollution, and infrastructure. Although it is not as dramatic as surviving on the frozen tundra, gravity factors can play a significant role in your international experience.
Corporate relocation packages, as a rule, try to encourage relocation to less desirable destinations by offering a bonus for work. Severity can mean different things to different people, and depending on what you find difficult, the premium your company offers may be a pleasant perk or a fall that hardly compensates for the stress and unhappiness that you experience during your assignment.
Studying the factors that you probably consider difficult will allow you to better prepare for weighing the proposal and addressing your life needs before you accept.
Asia-Pacific - a comparison of moving to two popular destinations
Using the purchasing power parity calculator (SPPP), we can compare the move from New York to two of the most popular destinations in the Asia-Pacific region. In the report you will receive an accurate forecast of the salary required for the new place.
In these two case studies, we used an employee who earns $ 100,000, who is married and has one child, moving from New York to Shanghai or Sydney.
Example # 1: New York to Shanghai
With an expatriate community estimated at 220,000, Shanghai, the largest city in China, is the main destination for foreign workers. The developing economy has provided tremendous opportunities for companies around the world to participate in the rapid economic growth and modernization of this country for more than 1.3 billion people.
Total cost of living index + 1.89% (+ 1890.00 US dollars)
The cost of living in Shanghai is only slightly higher than in New York.
Transportation -14.44%
Things like taxi fares are significantly lower in Shanghai than in New York. In a 25-mile drive from Pudong International Airport to the center of Shanghai, you will cost a little less than $ 30, and a shorter 15 miles from JFK to Manhattan will return you $ 45. If you choose a bus or subway, Shanghai will cost about 45 cents against $ 2.50 in New York.
Restaurants and restaurants -3.50%
Food is also an excellent bargain, and if you are a big foodie who enjoys variety, then Shanghai can be a place for you. If you often visit the local home of your favorite noodles, you can pay less than $ 2 for food.
Education + 20.76%
Education can be a big expense, as language barriers often precede public school attendance. Although many expatriates recommend that public schools have the opportunity to be fluent in Mandarin and unique cultural experiences during the first few years, the vast majority of emigrant children in Shanghai attend international schools. The cost of international schools varies from $ 12,000 to more than $ 30,000 per year.
Difficulty Bonus + 20% (+ $ 20,000.00)
Cultural and language differences can be difficult for many people moving to Shanghai. Mandarin is considered one of the most difficult languages in the world, which must master it because of its tonality. Each word has several meanings depending on the combination of tones.
Problems with air pollution and food safety are also often seen as problems for many expatriates. Restrictive government regulations in areas such as the media can also create difficulties for some people.
Case Study # 2: New York to Sydney
Hardship Premium 0%
Thanks to a relaxed lifestyle, warm weather and one of the highest standards of living in the world, Sydney is a favorite place for many expatriates. With more than half the largest Australian companies headquartered in Sydney, there is no shortage of opportunities.
The index of total cost of living + 18,12% (+ 18,120.00 US dollars)
Although it seems that everything will be for it, Sydney is also regularly considered to be one of the most expensive places to live.
Communication + 84%
In Australia, the cost of cell phone and internet services can be a shock for an American who usually pays only $ 70 per month for unlimited national calls, text messages and wireless Internet. Australian wireless Internet plans typically have a monthly data throughput of 5-15 gigabytes with some of the highest per gigabyte overpayments of any developed country. Depending on your usual use of the phone or the Internet, you can pay a few hundred dollars more per month.
Alcohol and tobacco + 34.5%
Clothing + 68.4%
Groceries + 15.58%
Recreation and culture + 29.17%
Restaurants and restaurants + 25.00%
Transportation + 35.78%
Because of this, remote location and relatively small population (about the same number of people live throughout the continent of Australia as they live in Shanghai), Australia has some of the highest prices for consumer goods and groceries of any developed country. In addition to the high cost of shipping imported goods, the government is introducing tariffs to encourage local industries, such as banana manufacturers and car manufacturers. The flip side of the high cost of maintaining these domestic industries was that Australia remained relatively unaffected during the 2008 global economic crisis.
Apples and Oranges
If you look at a possible foreign publication, it is important to understand that each of them is different and that what may seem heavenly on earth to one person may be unbearable for another. With access to detailed information such as an SPPP report, you can agree on a well-structured package of benefits for your relocation. Knowing what you value most about quality of life and what to expect when you get there will also go a long way in alleviating stress.
