The approach to compensating and rewarding expatriates that equalizes the purchasing power of the expatriate manager with that of employees in similar positions in the home country and provides incentives to offset any hardships incurred in the location is known as:
A) the international approach.
B) the balance sheet approach.
C) the equalization approach.
D) the host-country approach.
E) the flexible benefits approach.

Question

Quizplus · Accepted Answer

The described approach is known as the balance sheet approach, which aims to equalize the purchasing power of expatriates with that of employees in similar positions in the home country. In addition, it provides incentives to compensate for any hardships encountered in the host location. The other options, such as the international, equalization, host-country, and flexible benefits approaches, do not reflect this specific approach to expatriate compensation and rewards.

The Approach to Compensating and Rewarding Expatriates That Equalizes the Purchasing