Net export and net factor income from abroad are same while calculating national income through expenditure method

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Dear student
No net export and net factor income from abroad are not the same while calculating national income through expenditure method because of the following differences :

S.NO NET EXPORT NET FACTOR INCOME FROM ABROAD

1 It is the deference between exports and imports. It is the difference between factor income from abroad and factor income to abroad.

2 Net export is a domestic concept i.e. it is a part of domestic income. Net factor income from abroad is a national concept i.e. it is a part of national income.

3 It includes only non factor services. It includes only factor services.

4 Its main components includes : export and import of goods, export and import of non factor services. Its main components includes : net compensation to employees, net income from properties and entrepreneurship, etc.

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Similar questions

(a) From the following data compute net value added at factor cost:

$\begin{matrix} Items & Domestic sales & Subsidies & Purchase of raw material & Exports & Depreciation & Import of & Net in domestic market & indirect taxes In Crores & 2500 & 40 & 500 & 200 & 100 & 600 & 60 \end{matrix}$

(b) Intermediate goods and corporate tax are included in national income indirectly. How ?

Calculate $G N P_{m p}$

(a) By Income Method

(b) Expenditure Method

$\begin{matrix} (a) & Rent & 40 (b) & Private Final Consumption Expenditure & 800 (c) & Net Exports & 20 (d) & Interest & 60 (e) & Profit & 120 (f) & Government Final Consumption Expenditure & 200 (g) & Net Domestic Capital Formation & 100 (h) & Compensation of Employees & 800 (i) & Depreciation & 20 (j) & Net Indirect Taxes & 100 (k) & Net Factors Income From Abroad & (-) 20 \end{matrix}$

Q. From the following data, calculate National Income by Income method and Expenditure method:

	Item	Rs. in crores
(i)	Compensation of employees	700
(ii)	Government final consumption expenditure	750
(iii)	Net factor income from abroad	(-) 10
(iv)	Net exports	(-) 15
(v)	Profits	600
(vi)	Net indirect taxes	60
(vii)	Mixed income of self-employed	350
(viii)	Rent	200
(ix)	Interest	310
(x)	Private final consumption expenditure	1100
(xi)	Net domestic capital formation	385
(xii)	Consumption of fixed capital	65

Q. Calculate (a) National Income, and (b) Net National Disposable Income. (Rs in crores)
(i) Compensation of employees 2,000
(ii) Rent 400
(iii) Profit 900
(iv) Dividend 100
(v) Interest 500
(vi) Mixed income of self-employed 7,000
(vii)Net factor income to abrorad 50
(viii)Net exports 60
(ix) Net indirect taxes 300
(x) Depreciation 150
(xi) Net current transfers to abroad 30

Q. If the domestic factor income is

R s . 200

crores and the national income is

R s . 190

crores, calculate the net factor income from abroad.

Q. If

N D P_{F C}

R s . 1, 000

crores and

N F I A

(Net Factor Income from Abroad) is

(-) R s . 5

crores. Calculate the national income.

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S.NO	NET EXPORT	NET FACTOR INCOME FROM ABROAD
1	It is the deference between exports and imports.	It is the difference between factor income from abroad and factor income to abroad.
2	Net export is a domestic concept i.e. it is a part of domestic income.	Net factor income from abroad is a national concept i.e. it is a part of national income.
3	It includes only non factor services.	It includes only factor services.
4	Its main components includes : export and import of goods, export and import of non factor services.	Its main components includes : net compensation to employees, net income from properties and entrepreneurship, etc.