The ________ of compensation determines an expatriate's compensation on the prevailing pay scales in the locale of the foreign assignment.

Question

Quizplus · Accepted Answer

The host-based method of compensation determines an expatriate's compensation based on the prevailing pay scales in the locale of the foreign assignment. This approach ensures that the expatriate's pay is comparable to that of local employees and takes into consideration the cost of living and local economic conditions. The headquarters-based method and home-based method both use the parent company's pay scales as a reference point, which may not be appropriate for local conditions. The culturally based method is not a commonly used method of compensation.

The ________ of Compensation Determines an Expatriate's Compensation on the Prevailing