An approach to developing an expatriate compensation package that is based on ensuring that the expat is "made whole" and does not lose money by taking the assignment is referred to as the:
A)Balance-sheet approach
B)Lump-sum method
C)Localization approach
D)Cafeteria approach

Question

Quizplus · Accepted Answer

The balance-sheet approach is designed to ensure that an expatriate does not financially lose out by taking an assignment abroad. This approach calculates the difference between the cost of living in the home country and the host country, including items such as housing, taxes, and schooling. The employer can then provide a compensation package that makes up for the difference, including things like housing allowances, tax equalization, and education expenses. This approach is the most comprehensive and ensures that the expatriate is "made whole."

An Approach to Developing an Expatriate Compensation Package That Is