Riordan is now considering an expansion to Japan.

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International Pay Systems

Can you help me with this...Assume that Riordan is now considering an expansion to Japan and that Robert Lord's pay is $140,000 per year in the United States. Taking into consideration that an expatriate's pay would include housing, healthcare, transportation, allowances and premiums, and so forth, how would Robert Lord's pay as an expatriate differ from the pay of a Japanese national of the same age? Is this difference equitable? How would Robert Lord's pay differ if he were relocated back to the U.S? Is this difference equitable? Evaluate the effect of trade unions and employee involvement on the Japanese national compensation system. What role does the social contract play in the Japanese system?
About Riordan
Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. With state-of-the art design capabilities, we create innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing.
JAPAN & EMPLOYMENT
Japan is one of the most expensive countries and had a unique system of life term employment until sometime ago. Even now it persists but many big companies to be competitive enough with the growing competition among cheap prices of goods and services have adopted laying-off the workers. There even hire part time workers or "Freeters" as they are called in place of full time employees to cut down the increasing costs. Japan is in a transition phase from traditional to contemporary or western systems. Earlier the compensation was based on seniority where as now it is performance or merit based in order to increase the efficiency or productivity of workers.
How would Robert Lord's pay as an expatriate differ from the pay of a Japanese national of the same age? Is this difference equitable? How would Robert Lord's pay differ if he were relocated back to the U.S? Is this difference equitable?

The Japanese need twice as much money as Americans to enjoy the same purchasing power; an entry-level clerk at a Japanese convenience store easily can earn $30,000 a year
Expatriate salaries are generally higher than salaries paid to Japanese nationals. Average monthly salaries are in the range of 300,000 to 500,000 JPY ($2,560 to $4,270 USD). Japan also has a bonus system, which is a major part of the salary structure. On top of a monthly salary, two bonuses are paid annually; often this amount can equal as much as one-third of a salary. In terms of wage differential, full-time workers of medium and small companies generally earn less than employees of large companies.3
Expatriates who plan to come to Japan to work should have health care from their home country. After one year, expatriates can change to the Japanese plan or a private health care ...