Which of the following is the key purpose of the balance-sheet approach to compensating expatriate managers?
A) to enhance the skills of the expatriate
B) to ensure that the expatriate does not lose financially in his or her international assignment
C) to balance the social costs of the assignment
D) to ensure that there is work-life balance

Question

Quizplus · Accepted Answer

The key purpose of the balance-sheet approach is to ensure that the expatriate does not lose financially in their international assignment. This involves calculating and adjusting the expatriate's compensation package (including salary, benefits, taxes, and cost of living) to the standard of their home country, in order to maintain their purchasing power and quality of life while abroad. This approach aims to eliminate financial disincentives for accepting an international assignment and to ensure that the expatriate is not financially worse off by taking the assignment.

Which of the Following Is the Key Purpose of the Balance-Sheet