|
ECA’s NSC enables users
to identify which international transfers affect the manager’s
purchasing power if local market rate salaries are used.
The NSC not only compares average salaries across a
range of locations worldwide, but also looks at relative
purchasing power across the survey.
Th e graph below, for example, shows that
although a US national and a Danish national enjoy
similar gross salaries, to move an American to Denmark would leave him
considerably worse off than at home (shown by the yellow
block). This is because of the disparity in relative buying
power caused by the countries’ differing tax regimes and
the cost of living.
|
