Final answer:
Expatriates are awarded cost-of-living allowances to account for higher living costs abroad compared to their home country. These allowances help them sustain a comparable standard of living. Corporations also provide higher wages and benefits to attract skilled workers to developing countries.
Step-by-step explanation:
Expatriates receive cost-of-living allowances when the cost of living is higher where they work than in the home country. Such allowances are designed to bridge the gap between the cost of life in the home country and the host country, facilitating the relocation for the employee. While not limited solely to cost-of-living adjustments, these allowances can also cover housing, education, and other essentials to enable the expatriate to maintain a similar standard of living abroad as they would have at home.
Furthermore, multinational corporations taking care of their workforce might also provide higher wages and better benefits in places where economic conditions are challenging. Such provisions are aimed at attracting skilled workers and ensuring their well-being while they are away from their home country, often in a developing country where the corporation operates.