Question

When does Net Factor Income from Abroad (NFIA) shows Negative Value?

Answer 1

NFIA shows negative value when factor income from abroad exceeds factor income to abroad.

NFIA = Factor income from abroad - Factor income to abroad

Suppose, Factor Income from abroad = ₹ 40

Factor Income to abroad = ₹ 60

Then,

NFIA =  ₹ (40 - 60) 

=  ₹ (-20)