Ernest,a U.S.citizen employee is being assigned to the company's German office in Munich because of his intimate knowledge of the company's main product.Ernest was previously stationed at the company headquarters in Kansas City.Al,l of the following issues should be taken into account when determining Ernest's pay during the years he works in Munich EXCEPT
A) the compensation that a German would make in a similar job in Munich.
B) German income tax policies.
C) cost of living differences between Kansas City and Munich.
D) fluctuations between the value of the dollar and the euro.

Question

Quizplus · Accepted Answer

The compensation of a German in a similar job in Munich would not necessarily be relevant to determining Ernest's pay. The company should consider factors such as cost of living differences, tax policies, and currency fluctuations when determining his compensation package.