Abstract
This article discusses a model of expatriate compensation that incorporates and combines an expatriate selection process with a detailed foreign assignment evaluation and then links that situational analysis with a specific compensation package. The situational analysis classifies expatriate assignments into four categories: an ideal or desirable assignment, a question mark assignment, a challenge assignment and an undesirable assignment. The article describes the recommended compensation approaches for each situational analysis. Ultimately, the model offers organizational decision makers a strategic-planning tool that balances the need to control expatriate costs while increasing the probability of a successful expatriate assignment and improving the bottom line.
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