Great, I have several managers in mind that I know will do a phenomenal job. Good, I can help determine the type of compensation they receive as well. What you mean? Wouldn't employees get paid their regular US salary? Not always. We will need to look at the cost of living in China where your offices will be and determine if Sweet Feet wants to maintain the manager's standard of living. You have two options. You could choose the home country- based approach in which the standard of living the manager has here in the US will be maintained in China. This includes housing, taxes, and other discretionary spending expenses all calculated based on items in the home country. Of course, that may lead to higher costs to the company. What is the other option? The other option is the host country-based approach where we would compensate the manager at the same level as workers in China. This approach may save the company some money depending on the cost of living expenses in China, and help the managers acclimate to the culture during their assignment. Can you make a recommendation? What should HR recommend to Mary? Use the home-country approach Use the host-country approach