Problem:
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?