Host-based pay is compensation that is equivalent to that earned by employees in the country where the expatriate is assigned, and companies use this method because it is less costly than other methods.

Question

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Host-based pay is designed to align with the local market pay rates with the same level of responsibilities and qualifications, making it less costly for companies to compensate expatriates and attract top talent in the host country.

Host-Based Pay Is Compensation That Is Equivalent to That Earned