Question Detail

IRP 321 Compensation Management policies Objective Question

Question

Which model of expatriate compensation is also known as the 'balance sheet approach' and pays expatriates according to the home or headquarters' compensation structure?
Options
A Host-country-based model
B Global market approach
C Home-base or Headquarters-based model
Correct Answer
D Hybrid model
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 35 explicitly states: 'Home-base or Headquarters-based model: Expatriates are paid according to the home or headquarters’ compensation structure. This is called the balance sheet approach.'

Hint

This model bases compensation on the expatriate's original country or company's headquarters.

Question Info