Question

Long Answer Type Questions
What is meant by net factor income from abroad? Briefly discuss its various components.

Answer 1

Net factor income from abroad: It is the difference between factor incomes earned by our residents from rest of the world and factor income earned by the non-residents in our domestic territory.
Components of Net factor income from abroad are:
a) factor incomes earned by our residents from rest of the world
b) factor income earned by the non-residents in our domestic territory.