What is the most common method for formulating expatriate pay, to equalize purchasing power across countries?
A) Balance sheet approach
B) Balance of payments approach
C) Equity approach
D) Income statement approach
E) Cash flow approach

Question

Quizplus · Accepted Answer

The most common method for formulating expatriate pay to equalize purchasing power across countries is the balance sheet approach. This approach calculates the expatriate's compensation by comparing the cost of living in the home country with the cost of living in the host country, and then creating a balance sheet that includes items such as housing, taxes, and other benefits to ensure that the expatriate's standard of living is maintained.

What Is the Most Common Method for Formulating Expatriate Pay