Compensating expatriates properly is important since if expatriates are not equitably paid, they are demotivated. Often MNEs use the balance sheet approach in which they develop a salary structure that equalizes purchasing power across countries for the same living standards regardless of their assigned locations. (1) List different compensation methods (e.g., home-based method), (2) list at least one advantage of each method (at least one for each (e.g., preserving equity with home country colleagues).