Identify a true statement about decisions related to the global compensation strategy.
A) They affect a company's costs and abilities to compete.
B) They focus more on flexibility than on fairness to account for differences across cultures.
C) They are made on the basis of the cost of living in the home country.
D) They do not compare wages across countries.
E) They are not determined by labor costs.

Question

Quizplus · Accepted Answer

Decisions related to the global compensation strategy can significantly affect a company's costs and its competitiveness in the global market. This is because these decisions determine how much the company will pay its employees in different countries, and labor costs are a significant factor in a company's overall costs. Therefore, the decision on the global compensation strategy should balance the company's need to manage costs with its need to attract and retain talent.

Identify a True Statement About Decisions Related to the Global