Whether a company chooses to compensate by home-based currency or host-based currency often depends upon the standard of living in the host country.

Question

Quizplus · Accepted Answer

This is because if the standard of living in the host country is high, it may be more expensive for the company to compensate in the host-based currency, whereas compensating in the home-based currency may provide a higher purchasing power for the employee. Conversely, if the standard of living in the host country is lower, compensating in the host-based currency may provide a higher standard of living for the employee.

Whether a Company Chooses to Compensate by Home-Based Currency or Host-Based