Roger, an American, is selected by his firm to undertake a temporary assignment in Russia. Roger's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which approach has been used to determine Roger's compensation?

A) third-country based approach
B) flat-pay approach
C) transactional approach
D) balance sheet approach
E) going-rate approach

Question

Ashton Cohoon · Accepted Answer

Final Answer : D, Explanation :  The balance sheet approach has been used to determine Roger's compensation. This approach involves calculating the cost of maintaining the employee's standard of living in the host country and adjusts the compensation accordingly. The approach also takes into account the expenses incurred in relocating the employee to the host country, ensuring that the employee is not inconvenienced by the transfer.

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