The most widely used method in expatriate compensation is _____.
A) going rate approach
B) balance sheet approach
C) pay-per-impression
D) employee's request approach

Question

The most widely used method in expatriate compensation is _____.
A) going rate approach 
B) balance sheet approach 
C) pay-per-impression 
D) employee's request approach

Quizplus · Accepted Answer

The balance sheet approach is the most widely used method in expatriate compensation because it ensures that the expatriate maintains the same standard of living in the host country as they did in their home country. The balance sheet approach calculates the expatriate's compensation package based on three components: home country pay, benefits, and taxes; allowances for cost of living and housing in the host country; and potential additional compensation for hardship or inconvenience of living in the host country. The going rate approach is a market-based approach that sets the expatriate's compensation based on what other employees in the host country are earning in similar positions. The pay-per-impression approach compensates expatriates based on the significance of the work they are doing in the host country. The employee's request approach allows the expatriate to negotiate their compensation package based on their personal preferences and needs.

The Most Widely Used Method in Expatriate Compensation Is _____