The "Local Plus" Approach to International Compensation

question 41

Multiple Choice

The "Local Plus" approach to international compensation

• A) Pays expatriates solely based on prevailing local wage conditions
• B) Provides nothing but benefits in transportation assistance,housing and dependent's education
• C) Combines some local pay practices with some expatriate benefits
• D) Always includes tax equalization policies

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Definitions:

Larger Percentage Increase

A situation where the rate of increase in a particular variable is higher relative to other comparable measures or periods.

Average Costs

The total cost of production divided by the number of units produced, giving the cost per unit of production.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may even decrease.

Diseconomies of Scale

A phenomenon where production costs per unit increase as a firm's output increases, often due to inefficiencies that arise when companies become too large.