Differences between NFIA and Net export
Answers
Answer:
Net factor income from abroad :-lt refers to the difference between factor income earned by our normal residents from rest of the world and factor income earned by normal residents.
lt is a part of national income.
NFIA=Factor income from abroad earned by the normal residents-Factor income of non residents of the domestic territory.
On the other hand net exports is the difference between exports and lmports of goods and non factor services related to domestic territory of the country.
It is a part of domestic income.
Net Exports=Exports-Imports.
Answer:
Net Factor Payment from Abroad (NFP) is defined as income paid to domestic factors of production by the rest of the world minus income paid to foreign factors of production by domestic economy. This can be denoted mathematically as: GDP = GNP – NFP For countries with high remittances GNP is a more important indicator.