The ________ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.
A) going-rate approach
B) destination-based approach
C) home-country-based approach
D) flat-pay approach
E) balance sheet approach

Question

Quizplus · Accepted Answer

The balance sheet approach is commonly used in international compensation to determine how much a person can spend, after taxes, on housing, goods/services, and savings when they take a foreign work assignment. The approach involves calculating the difference between a person's cost of living at home and in the foreign location and adjusting their compensation accordingly to maintain their standard of living. This approach is usually seen as the most comprehensive and accurate way of ensuring that a person can maintain their relative buying power across borders.

The ________ Begins by Determining How Much a Person Can