Final answer:
U.S. companies rely on expatriates as a pay referent when developing international compensation packages.
Step-by-step explanation:
When developing international compensation packages, U.S. companies often rely on expatriates as a pay referent. Expatriates are employees who are temporarily assigned to work in a foreign country by their home-country company. These employees serve as a benchmark for determining salary levels and benefits for other employees in the international locations.