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International Compensation and Benefits

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Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain your answer. If you answer no, what can companies do to minimize costs?

© BrainMass Inc. brainmass.com October 15, 2018, 11:50 am ad1c9bdddf - https://brainmass.com/business/compensation-strategies/international-compensation-and-benefits-562484

Solution Preview

Allowances and reimbursements are costly for domestic and international companies, both. It is true that allowances and reimbursements are more costly for international companies, as the amount of allowances and reimbursements are greater. Also, currency fluctuations have to be considered. If I have employees in a country where the currency is valued a great deal higher than in the domestic country, this creates an additional ...

Solution Summary

This solution explains ways that management can minimize costs if they choose to conduct international operations. Allowances and reimbursements to employees on international assignments is a large cost area for employers. This solution explains if a better strategy would involve ending international business activities.

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