Daniel,an American,is selected by his firm to undertake a temporary assignment in Russia.Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia.He is also paid relocation expenses to ensure he is not inconvenienced by the transfer.Which of the following approaches have been used to determine Daniel's compensation?

Question

Quizplus · Accepted Answer

The balance sheet approach has been used to determine Daniel's compensation as it takes into account the cost of living differences between two locations along with other factors such as taxes, housing, education, etc. The approach ensures that an employee is neither overpaid nor underpaid and is able to maintain a similar standard of living in the new location as compared to the home location. The payment of relocation expenses further supports the use of the balance sheet approach.

Daniel,an American,is Selected by His Firm to Undertake a Temporary