Certified Meeting Professional (CMP) Practice Exam

When planning for international events, which two factors should be prioritized in the budget?

1. Accommodation and travel costs

2. Currency and tax issues

3. Menu and beverage selection

4. Technology and staffing

The correct answer is: Currency and tax issues

Prioritizing currency and tax issues in the budget when planning for international events is crucial for several reasons. Currency fluctuations can significantly impact the overall cost of the event. By accurately accounting for the conversion rates and any potential financial risk associated with currency changes, planners can ensure that they stay within budget and avoid unexpected expenses. Additionally, tax implications vary widely by country, including value-added tax (VAT) or other local taxes that may apply to goods and services. Understanding the tax environment of the host country allows planners to anticipate expenses accurately and strategize, ensuring compliance with local regulations while optimizing the budget. While accommodation and travel costs, menu and beverage selection, and technology and staffing are all important aspects of event planning, they can often be adjusted or negotiated based on the overall budget constraints. However, overlooking currency and tax issues can lead to significant financial headaches down the road, making them the top priority when dealing with international budgets.