Which statement is true regarding decisions related to the global compensation strategy?
A) They affect a company's costs and abilities to compete.
B) They focus more on flexibility than on fairness to account for differences across cultures.
C) They are made on the basis of the cost of living in the home country.
D) They do not compare wages across countries.
E) They are not determined by labor costs.

Question

Quizplus · Accepted Answer

Decisions related to the global compensation strategy have a significant impact on a company's costs and their ability to compete with other businesses. The approach taken must balance long-term goals with the need for short-term cost savings. Wage rates, labor laws, and tax regulations across different countries can greatly impact a firm's ability to offer competitive compensation packages.

Which Statement Is True Regarding Decisions Related to the Global