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Global workers are workers go to work in another country that is not there country of residence at the time of employment. This mostly happens when a company that one works for has branches in other countries; this, therefore, requires the employee to travel a lot to these other countries or even relocate permanently to another country.

Expatriates are persons who are temporarily or permanently residing to another company or in another culture different from the one of their upbringing. Most of these people are professionals with considerable experience who go to other countries for job purposes; most of them have the intention of going back to their home country in the future.

Local nationals are host country nationals working in their country to work there; this mostly happens when a multinational employs citizens of a country to work in their subsidiary company without moving them to another country.

Third country nationals- these are international freelance employees who are neither from the home country nor the host country; most of these employees are on short term contracts and go back to their home countries when their contracts are over.

Balance sheet approach for compensating expatriates

The balance sheet system also referred to as the buildup system; this is because it aims at paying the expatriate the same salary as what he earned in his or her home country. Milkovich, Newman, 2010 states that this system resemble the traditional Japanese system because it concentrates mostly on the experienced mid to senior level expatriates depending on their length of service. The salary pays for the cost of living that includes goods and services, housing, taxes, and reserves among others. The pay seeks to make the expatriates live almost the same life they lived back home without having to change their spending and consumption patterns.

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