A Downside of the Localization Approach to Expat Compensation Is

question 34

Multiple Choice

A downside of the localization approach to expat compensation is _____.

• A) it is more expensive than the balance sheet approach
• B) it is more complex than the lump-sum cafeteria approach
• C) that salaries will vary by location
• D) it is more difficult for expats to understand

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.

Price Elasticity of Supply

The measure of how the quantity supplied of a good changes in response to a change in its price.