Which of the following statements is true of the host-country-based approach?
A) Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters.
B) Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered.
C) Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index.
D) Compensation is adjusted to maintain the expatriate's standard of living in the third country.

Question

Quizplus · Accepted Answer

The host-country-based approach adjusts compensation to maintain the expatriate's standard of living in the country where they are sent from the headquarters. This approach takes into consideration the cost of living in the host country and adjusts the expatriate's pay accordingly to ensure that their standard of living remains consistent with what they would have experienced had they stayed in their home country.

Which of the Following Statements Is True of the Host-Country-Based