Net foreign investment under National Income Accounting is equal to
Answers
Answer:
Net foreign investment equals the amount that foreigners invest in the U.S. (their purchase of assets here) minus the amount that U.S. residents invest abroad (U.S. residents' purchase of assets in other countries). Net foreign investment generally equals net exports. ... Net exports equal net foreign investment.
Answer:
The difference between a country's gross domestic product (GDP) and gross national product is its net foreign factor income (NFFI) (GDP).
GNP - GDP = Net Foreign Income
Explanation:
The difference between the amount that foreigners invest overseas (their acquisition of assets there), for instance, in India, and the amount that Indian residents invest abroad (their purchase of assets in other countries), is known as net foreign investment.
Due to a general balance between domestic and international payments that most countries experience, NFFI is typically not a significant issue.
Only the amount of remitted revenue from overseas portfolio investments is included, and no attempt has been made to impute indirect taxes to the value produced by foreign investments, as would be required by the ideas of factor nationality and national business.
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