When Determining How to Compensate Expatriates,an Advantage of the "Going-Rate

question 22

Multiple Choice

When determining how to compensate expatriates,an advantage of the "going-rate approach" is that

• A)the expatriate is kept whole during the assignment because his pay is similar to the pay that would have been received for working the same job in their home county
• B)locals perceive the pay as fair because the expatriate is paid at a rate that is similar to the pay received by local employees of that company who have similar position, performance and experience.
• C)it is an effective means to reduce costs because you are offering the expatriate the ability to choose from a variety of benefit options that are appropriate to the location of the expatriate assignment.
• D) although it is a high cost approach, the ability of the expatriate to save on housing and social expenses while on assignment makes expatriate assignments in countries with low pay levels more attractive.
• E)with the increase in dual income families, this options provides an incentive for both the employee of the company and their spouse to accept an expatriate assignment

---

Definitions:

Accounts Payable

The amount of money that a company owes its suppliers for goods and services purchased on credit and has not yet paid.

Common-Size Financial Statement

Financial statements that present all items in percentage terms, with each line item displayed as a percentage of a significant figure such as total sales or total assets, for comparison purposes.

Source Of Cash

A Source Of Cash refers to activities or transactions that bring money into a company, increasing its cash flow, such as operating activities, financing activities, and investing activities.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors, representing its short-term liabilities.