Pete Miller is from Texas. He has been asked by his American-owned employer to manage a bank branch office in Hong Kong for three years. Miller will be paid:
A) what a manager at the same pay grade in Hong Kong would be paid without regard to nationality
B) what he was paid to perform the same job in the U.S.
C) a standard rate that is paid to all the expatriate employees of this company
D) a pay level comparable to his colleagues plus compensation for the cost of international service
E) what a manager in the banking industry at the same pay grade in Hong Kong would be paid

Question

Quizplus · Accepted Answer

The most common approach for companies is to offer expatriates compensation comparable to their colleagues in the host country (+/- an adjustment for cost of living differences) along with additional compensation for the costs of international service, such as housing, travel expenses, and tax equalization. Therefore, D is the most appropriate option.

Pete Miller Is from Texas