In the context of compensation for international assignments, which of the following is a difference between the home-country-based approach and the host-country-based approach?
A) Unlike the home-country-based approach, the host-country-based approach involves calculating taxes and discretionary spending expenses based on those items' costs in the home country.
B) Unlike the host-country-based approach, the home-country-based approach compensates the expatriate at the same level as workers from the host country.
C) Unlike the host-country-based approach, the objective of the home-country-based approach is to maintain the standard of living the expatriate had in the home country.
D) Unlike the home-country-based approach, the host-country-based approach results in higher employer costs and more administrative complexity.

Question

Quizplus · Accepted Answer

The home-country-based approach aims to maintain the expatriate's standard of living from the home country by providing the same level of compensation as they had before the international assignment. On the other hand, the host-country-based approach calculates compensation based on local market conditions and norms, which may result in a higher or lower standard of living compared to the expatriate's home country. Therefore, Choice C is correct.

In the Context of Compensation for International Assignments, Which of the Following