Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

According to Armstrong & Murlis (2004), what is the main objective of an expatriates' remuneration policy in global or multinational companies?
Options
A To maximize the company's profit by minimizing expatriate costs
B To ensure expatriates are neither better nor worse-off as a consequence of their overseas assignments
Correct Answer
C To pay expatriates significantly more than local nationals to incentivize assignments
D To simplify tax and benefits administration for international assignees
Correct Answer

Option B is the correct answer.

Detailed Explanation

Page 34 states: '...“the aim of expatriates or international assignees' remuneration policy is to ensure that expatriates are neither better nor worse-off as a consequence of their overseas assignments or tour of duty” (Armstrong & Murlis, 2004).'

Hint

The goal is usually to maintain the expatriate's living standard or financial position relative to their home country.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 27 of 59
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