Acme Global is sending Benjamin on an expatriate assignment.Benjamin will receive 60% of his pay in the host country currency and 40% of his pay in his home country currency.It appears Acme Global is using the _________ approach to expatriate compensation.
A)balance sheet
B)split-pay
C)lump sum
D)localization
E)equalization

Question

Quizplus · Accepted Answer

The split-pay approach refers to providing a portion of the expatriate's pay in the host country currency and a portion in the home country currency. This approach is commonly used by companies to balance the need to provide a competitive salary package for the expatriate while also minimizing the risks associated with currency fluctuations. The balance sheet approach involves reimbursing the expatriate for the cost of living differences and tax liabilities, while the lump sum approach involves providing a one-time payment to cover various expenses. The localization approach involves paying the expatriate the same salary as local employees, and the equalization approach involves providing a salary package that equals the expatriate's salary and benefits in the home country.

Acme Global Is Sending Benjamin on an Expatriate Assignment