Discuss the strengths and weaknesses of the following methods for establishing home-based pay, headquarters-based pay, and host country-based pay.

a. Discuss your reaction to the following statement: “U.S. companies should increase base pay (beyond the level that would be paid in the United States) to motivate employees to accept foreign assignments.”

b. Allowances and reimbursements for international assignments are costly. Should companies avoid international business activities? Explain your answer. If you answer no, what can companies do to minimize costs?

c. Of the many reimbursements and allowances that U.S. companies make for employees who take foreign assignments, which one is the most essential? Discuss your reasons