Discuss the variables to consider when compensating host country nationals.

Compensating host country nationals as a multinational or
foreign organization is dependent on a lot of factors. While organizations have to
adhere to the local labour laws and policies, they sometimes also have to adhere to
their home country labour standards. Some countries have stringent rules and policies
regarding child labour and general working conditions that companies would have to
adhere to even in their foreign operations. That being said pure salary compensation is
usually decided based on the local base and incentive pay. Some of the major factors
that are considered when deciding the compensation for host country nationals
are:

1. Host country compensation practices and
   regulations


2. Host country average wage rates for the
   particular job qualification


3. Cost of
   living


4. Availability of public social services in host
   country ( like universal health care or free
   schooling)