Question

6.
Export receipts are not a part of net factor income from abroad. Why?​

Answer 1

Answer:

since exported goods and services are produced in domestic territory of a country, therefore, export of goods and services is a part of gross domestic product (GDP). Export receipts are not 'net factor income from abroad' as they are revenue of the firms from sale of their products.

Answer 2

NANBA...

This is because of two reasons:

(i) Export refers to the purchase of domestically produced goods by the rest of the world. Goods produced within the domestic territory of a country are to be treated as a part of GDP.

(ii) Export receipts refer to revenue of the firms from the sale of its output. These are not the receipts of factor incomes from abroad which are to be in the form of rent, interest, profit and wages.