In using the balance sheet approach to compensating expatriate managers, the term "incentive premiums" refers to which of the following concepts?

A) extra money for enduring the culture shock
B) offsetting the higher costs of overseas goods and services
C) compensating the managers for separation from family and friends and doing hazardous duty
D) covering moving, storage, and educational expenses

Incentive Premiums

Additional payments or rewards offered to employees as an extra incentive to boost productivity, achieve targets, or enhance motivation.

Balance Sheet Approach

A compensation system designed to match the purchasing power in a person’s home country.

Culture Shock

The feeling of disorientation and discomfort that comes from encountering a culture with very different norms and expectations.