One method of compensation in a global business is to pay a similar base salary company wide or region wide and offer expatriates an allowance based on specific market conditions in each country. This is known as _____.

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This method is known as the balance sheet approach, which provides expatriates with an allowance to cover differences in the cost of living, taxes, housing, and other factors in the host country compared to their home country while keeping the base salary similar to other employees in the company or region. Broadbanding refers to the practice of consolidating many pay grades into broader salary bands, while skills-based pay and competence-based pay are based on an employee's skills or competencies rather than job titles. A pay grading system is a way of categorizing jobs based on factors such as skills, responsibilities, and experience.

One Method of Compensation in a Global Business Is to Pay