When Ava accepted an expatriate assignment, the organization continued to pay her at a rate equivalent to her home-country salary but also gave her an allowance to help with other expenses.This is an example of a lump sum approach to expatriate compensation.

Question

Quizplus · Accepted Answer

This is an example of a balance sheet approach to expatriate compensation, which combines the home-country salary with additional allowances and benefits to ensure a similar standard of living in the host country. A lump sum approach would provide a single fixed amount of money to the expatriate, without specifying how it should be spent.

When Ava Accepted an Expatriate Assignment, the Organization Continued to Pay