In the Context of Global Compensation, Which of the Following

question 19

Multiple Choice

In the context of global compensation, which of the following strategies should be practiced?

• A) A similar framework should be created for jobs with different responsibilities.
• B) The support of senior sales executives need not be sought before taking action.
• C) Local managers should not decide the mix between base and incentive pay.
• D) Consistent communication and training themes should be used worldwide.
• E) The incentive plan should be designed centrally and dictated to local offices.

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Definitions:

Normal Profit

The minimum amount of profit required for a company to remain competitively active in the market; it is also the break-even point for a business.

Identical Firms

Companies within the same industry or market that offer products or services indistinguishable from one another to consumers.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the actual profitability of a firm beyond accounting profit.

Equilibrium

A state of balance in a market when the quantity demanded equals the quantity supplied, leading to no further incentive to change.