In the context of approaches to expatriate pay,which of the following is true of a balance sheet approach?
A) It helps expatriate managers and their families to adjust to the day-to-day life of the host country.
B) It rewards expatriates on the basis of merit and performance.
C) It is offered as an inducement to accept foreign postings and stay away from family in unfamiliar country.
D) It provides financial incentives to offset qualitative differences between assignment locations.
E) It reduces the amount of tax that the expatriates have to pay while on the foreign assignment.

Question

Quizplus · Accepted Answer

The balance sheet approach provides financial incentives to offset qualitative differences between assignment locations. This approach ensures that the expatriate's purchasing power is maintained at the same level as in the home country, by balancing the cost of living and providing allowances for education, housing, and other expenses. It does not help with adjustment to the host country, reward based on merit or performance, offer as an inducement or reduce tax.

In the Context of Approaches to Expatriate Pay,which of the Following