Which of the Following Statements Is True of the Host-Country-Based

question 94

Multiple Choice

Which of the following statements is true of the host-country-based approach?

• A) Compensation is adjusted to maintain the expatriate's standard of living in the country where the expatriate is sent from the headquarters.
• B) Compensation is adjusted to maintain the expatriate's standard of living in the country where the MNE is headquartered.
• C) Compensation is adjusted to maintain the expatriate's standard of living in the country that has the lowest cost of living index.
• D) Compensation is adjusted to maintain the expatriate's standard of living in the third country.

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Definitions:

Roosevelt Administration

The period of U.S. governance under President Franklin D. Roosevelt, most noted for the New Deal programs implemented to counter the effects of the Great Depression.

Dust Bowl

A period in the 1930s characterized by severe dust storms that damaged the ecology and agriculture of the US and Canadian prairies.

Okies

A term originally used to describe residents of Oklahoma during the Dust Bowl era, it now refers broadly to people who migrated from the central United States during economic hardships.

1930s

A decade marked by the Great Depression, affecting economies worldwide with severe economic downturns, high unemployment rates, and significant social and political impacts.