The balance sheet approach to international compensation adjusts the employee's compensation so that it equals the host country's standard of living,further ensuring assimilation into the local culture.

Question

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The balance sheet approach to international compensation is designed to equalize the purchasing power of employees abroad with their home country, rather than adjusting it to match the host country's standard of living. Its primary goal is to maintain the expatriate's standard of living relative to their home country, not to ensure assimilation into the local culture.

The Balance Sheet Approach to International Compensation Adjusts the Employee's