Host-country nationals cost less to place, are preferred by the local governments, know the language, and have an excellent knowledge of and feel for the local/national environment. However, host-country nationals must have the managerial ability and technical skills the MNC needs. Show Home-country nationals, known as expatriates, are already known quantities within the MNC. The MNC expects to have greater control over them, since they have provided the expatriates with work experiences. Offering mobility and international experience is often desirable to the MNC and the manager. However, the cost of relocation is extremely high, expatriates or their families may not adjust well, and many expatriates fear they will be passed over for promotions when they return. Third-country nationals, who are from one country, are working for an MNC located in a second, and are now assigned to yet a third country, bring a very broad experience and background to foreign assignments. They have an international outlook and are multilingual. However, their cost of relocation might be as high as an expatriate's. Further, unless operating within their own "zone," they may not bring with them any of the advantages a host-country national would offer. What is the key purpose of the balance sheet approach to compensating expatriate managers quizlet?The balance-sheet approach is a system designed to equalize the purchasing power of employees at comparable levels living overseas and in the home country, and to provide incentives to offset qualitative differences between assignment locations.
What is balance sheet approach of compensation?Balance Sheet Approach:
The Balance Sheet Approach to international compensation is a system designed to equalize the purchasing power of employees at comparable position levels living abroad and in the home country and to provide incentives to offset qualitative differences between assignment locations.
What are the main approaches to compensate expatriate employees?Organizations typically use one of four approaches to determine this.. The Home-country Approach. ... . The Balance Sheet Approach. ... . The Host-based Approach. ... . The Global Market Approach.. Why is the balance sheet approach important?Balance sheet analysis can help inform better judgments about the appropriate role of official finance in crises and the policies necessary for recovery. Official financing can help to restore confidence and prevent a balance sheet problem in one sector from snowballing into other sectors.
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What is the key purpose of the balance-sheet approach to compensating expatriate professionals?
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