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What is meant by net factor income from abroad? - Economics

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प्रश्न

What is meant by net factor income from abroad?

लघु उत्तरीय
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उत्तर

Net Factor Income from Abroad (NFIA) refers to the difference between the income earned by the residents of a country from abroad and the income earned by foreigners from that country during a year. Examples of factor income:

  • Wages and salaries
  • Rent
  • Interest
  • Profits

Formula:

NFIA = Factor income earned by residents from abroad − Factor income earned by foreigners within the country.

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