The Total Compensation Plan That Equalizes the Purchasing Power of the Expatriate

question 50

Multiple Choice

The total compensation plan 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 the inconvenience incurred in the location is known as

• A)the home-country approach.
• B)the balance-sheet approach.
• C)the equalization approach.
• D)the host-country approach.

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Definitions:

Negotiable

Capable of being discussed, transferred, or modified in terms of conditions or agreement.

Maker

In the context of negotiable instruments, the individual or entity that creates and signs the instrument, promising to pay the specified amount.

Liability

Liability is the legal responsibility to settle debts or legal claims. This encompasses both financial obligations and the duty to compensate for harm or damage caused.

Negotiable Instrument

A document in writing that promises to pay a designated sum of money, either when asked or at a predetermined time, with the document specifying who must make the payment.