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Explain How the Balance Sheet Approach to Expatriate Compensation Is

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Essay

Explain how the balance sheet approach to expatriate compensation is used to offset the differences between costs in the home and host countries


Definitions:

Years From Now

A temporal reference indicating a certain amount of time in the future from the current point.

Real Wages

Nominal wages corrected for inflation.

Money Wages

The current dollar amount of a person’s wages.

Consumer Price Index

The most important measure of inflation. This tells us the percentage rise in the price level since the base year, which is set at 100; represented by CPI.

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