Advertisements
Advertisements
Question
What is meant by net factor income from abroad?
Short Answer
Advertisements
Solution
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.
shaalaa.com
Is there an error in this question or solution?
