In the context of expatriate compensation,what is the role of a balance sheet approach?
A)It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.
B)It helps expatriate managers and their families to adjust to the day-to-day life of the host country.
C)It rewards expatriates on the basis of merit and performance.
D)It helps expatriates to come to terms with the standard of living of the host country.
E)It is offered as an inducement to accept foreign postings and live away from family.

Question

Quizplus · Accepted Answer

The balance sheet approach aims to equalize the purchasing power of expatriates across different countries to maintain their home country living standard. It takes into account the cost of living, taxes, and other expenses and provides allowances and benefits accordingly. The approach helps in retaining and motivating expatriates by ensuring that their compensation package is equitable and competitive, reducing the likelihood of expatriate failure.

In the Context of Expatriate Compensation,what Is the Role of a Balance