Asked by
Verified
What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?
A) to ensure that the company does not get stuck with paying the higher costs of living in an overseas location
B) to adjust the manager's pay downward so total compensation reflects the benefits of getting to travel
C) to give the manager the same amount of pay as in the home country but in the host country's currency
D) to give the manager an amount of compensation that enables the company to balance the books
E) to give the manager the same standard of living plus extra for the inconvenience of moving
Balance Sheet Approach
A method in expatriate management that aims to maintain an employee's standard of living when assigned overseas, by adjusting salary based on cost of living, housing, and other factors.
Standard Of Living
A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.
Compensation
The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed.
- Describe different methods used to calculate compensation for expatriates and explain the reasoning for each.
Verified Answer
Learning Objectives
- Describe different methods used to calculate compensation for expatriates and explain the reasoning for each.
Related questions
Roger, an American, Is Selected by His Firm to Undertake ...
What Is Evident When You Compare Wages and Benefits for ...
In Using the Balance Sheet Approach to Compensating Expatriate Managers ...
ABC Inc, a Firm Located in Tokyo, Japan, Is Likely ...
What Is a Key Advantage of Hiring Home-Country Nationals for ...