Which of the following statements about the compensation system is false?
A) An effective compensation policy seeks to eliminate all pay inequity between an expatriate and his/her local peers.
B) The implementation of a compensation system may necessarily be different in countries less accustomed to pay for performance and individual rewards.
C) An assignment in a difficult environment, such as much of Africa, would require greater compensation than an assignment to a more developed environment like Western Europe.
D) It has been estimated that, on average, expatriates cost employers two to five times as much as corresponding home-country employees, and even higher in some lower-wage countries.

Question

Quizplus · Accepted Answer

While an effective compensation policy seeks to eliminate as much pay inequity as possible, it is important to recognize that complete elimination of all inequity may not be feasible or practical. Some differences in compensation may be necessary due to factors such as cost of living, tax laws, and local labor market conditions. Therefore, it is not false to state that some pay inequity may still exist between an expatriate and his/her local peers.

Which of the Following Statements About the Compensation System Is