Which of the following statements is true of the home-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 home-country-based approach involves adjusting compensation to maintain the expatriate's standard of living in the country where the MNE is headquartered. This approach assumes that the expatriate will maintain ties with their home country and intends to return there eventually. Adjusting compensation based on the cost of living in the host country or a third country is not part of this approach.

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