A Variety of Options Are Available for How Multinationals Can

Multiple Choice

A variety of options are available for how multinationals can go about constructing compensation plans for expatriates. Which of the following popular methods is not correctly defined?

A) The localization method: paying the expatriate at least 20%-25% more than local employees in similar positions
B) The balance sheet model: "balancing out" the cost differences between the expatriate's home country lifestyle and their foreign assignment location
C) The ad hoc approach: the company and its expatriates negotiate on a case-by-case basis to cover the costs inherent in a foreign assignments
D) The localization method: paying the expatriate essentially the same as local employees in similar positions