All of the following statements are True about determining wages for employees in a global organization EXCEPT:
A) HCN is normally paid at the host country wage level.
B) PCN wages may be much higher than a HCN or TCN if they are from a country with a higher wage level than the host country.
C) TCN is normally paid at the host country wage level.
D) PCN wages are adjusted down when placed in an area with a lower cost of living.
E) Equity concerns between HCNs, TCNs and PCNs occurs when living costs are less than normally experienced by the PCN.

Question

Quizplus · Accepted Answer

PCN (Parent Country National) wages are typically not adjusted down when they are placed in an area with a lower cost of living. Instead, organizations often maintain the home country wage level or adjust wages to be competitive with the PCN's home country, rather than reducing them based on the host country's cost of living. This is to ensure that the assignment is attractive and to maintain equity with the compensation levels in the PCN's home country.

All of the Following Statements Are True About Determining Wages