Which of the following approaches seeks to ensure that employees on overseas assignments have the same spending power as they would in their home country?

Question

Quizplus · Accepted Answer

The balance sheet approach takes into account the cost of living differences between the home country and the host country, and seeks to ensure that employees have the same standard of living they would have had in their home country. It considers factors such as housing, taxes, and goods and services costs. The assets-liability approach aims to maintain the same net worth for employees on overseas assignments, while the compensatory tax approach is a tax equalization method that seeks to ensure that employees' tax liabilities are the same as they would have been in their home country. The income statement approach focuses on the salary and benefits received by the employee, rather than their standard of living.

Which of the Following Approaches Seeks to Ensure That Employees