Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?

Question

Quizplus · Accepted Answer

The approach which involves estimating the employee's expenses in the home country and the host country is known as the balance sheet approach. This approach calculates the difference between the employee's expenses in the home country and where they are going to be relocated, and adds that difference to the expatriate's salary. This ensures that the expatriate is able to maintain the same standard of living in the host country as they did in their home country.

Which Approach to Formulating Expatriate Pay Involves Estimating the Employee's