What is net factor income from abroad?


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sushma mavi answered
Net factor income from abroad is used to differetiate national income from domestic income. Simply, put nfia is the difference between the factor earned from abroad by normal residents of a country and the factor income earned by nonresidents(foreigners) in the domestic territory of that country.
The normal residents of a country earn factor income not only within the domestic territory of a country but outside it also. Income from outside can be earned mainly in two ways, namely (1) income from work and (2) income from property and enterpreneurship.

Nfia=factor income earned from abroad by residents - factor income of non residents in domestic territory

components of net factor income from abroad:
(1)net compensation of employees
(2)net income from property and enterpreneurship(rent,interest,profit)
(3)net retained earning of resident companies abroad

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