Final answer:
The compensation system that is equivalent to that earned by employees in the country where the expatriate is assigned is called the balance-sheet approach.
Step-by-step explanation:
The compensation system that is equivalent to that earned by employees in the country where the expatriate is assigned is called the balance-sheet approach. This approach aims to ensure that expatriates receive a salary and benefits package that is comparable to what they would receive if they were working in their home country. It takes into account factors such as cost of living, taxes, and exchange rates to determine the appropriate compensation.