Which of the Following Determines the Compensation of Expatriates by Adjusting

question 79

Multiple Choice

Which of the following determines the compensation of expatriates by adjusting the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas?

• A) The scorecard approach
• B) The balance-sheet approach
• C) The equalization approach
• D) The exchange-rate approach
• E) The correspondence approach

---

Definitions:

Tax

An essential fiscal demand or variant form of duty exacted from a taxpayer by a governmental institution, intended to sustain government expenditure and miscellaneous public financial requirements.

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

Activity

Any action or task undertaken by individuals or groups, often resulting in production or consumption of goods or services.

External Costs

Costs of economic activities that affect third parties outside the transaction, which are not reflected in market prices.