Question

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Answer 1

Factor income to abroad is the factor income earned by non- residents who are temporarily residing in our country or are working within our domestic territory, e.g. salaries paid to residents of Japan working in Indian Embassy in Japan.

Factor income from abroad is the factor income earned by normal residents of our country who are temporarily residing abroad or are working outside our domestic territory, e.g., profits earned by an Indian bank from its branches abroad.