BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Expert
|
|
|
Expatriate
|
|
|
Repatriate
|
|
|
Manager
|
Detailed explanation-1: -Expatriate compensation needs to take into account currency exchange rates. Employees are often paid a percentage of their base pay as a bonus for taking an overseas assignment. Expatriate compensation usually includes reimbursement of relocation expenses and provisions for a housing allowance.
Detailed explanation-2: -Further, compensation of expatriates is regarded as a key component in the effectiveness of global operations (Lowe et al., 2002). This reinforces why it is imperative for organizations to effectively compensate expatriates, regardless of location (Dwyer, 1999; Freedman and Vardy, 1998).
Detailed explanation-3: -A fundamental principle of expatriate compensation is that an expat should neither gain nor lose from differentials in living cost or fluctuations in exchange rates. To accomplish this balancing act, expatriate compensation packages are normally split into two parts: Spendable income.
Detailed explanation-4: -They are: taxes, commodities and services, housing, and discretionary income. The home-based approach is the most popular approach to international compensation worldwide.