Which compensation approach is the most cost effective?
A) Host country approach
B) Home country approach
C) Global approach
D) None of the above

Question

Quizplus · Accepted Answer

The Host Country Approach, also known as the Localisation approach, is generally the most cost-effective compensation strategy for multinational companies. This approach bases an expatriate's pay and benefits on the local standards of the host country where they are working. It can lead to significant savings, especially when the host country's cost of living and salary levels are lower than those of the home country.

Which Compensation Approach Is the Most Cost Effective