NFIFA comprises of certain components explain
Answers
Answer:
NFIA: Net Factor Income from Abroad (NFIA): Significance and Components! It refers to the difference between factor income received from the rest of the world and factor income paid to the rest of the world. NFIA = Factor income earned from abroad – Factor income paid abroad.
Answer:
It refers to the difference between factor income received from the rest of the world and factor income paid to the rest of the world. NFIA = Factor income earned from abroad – Factor income paid abroad1. ‘Factor income from abroad’ is the income earned by the normal residents of a country from the rest of the world (ROW) in the form of wages and salaries, rent, interest, dividend and retained earnings.
1. ‘Factor income from abroad’ is the income earned by the normal residents of a country from the rest of the world (ROW) in the form of wages and salaries, rent, interest, dividend and retained earnings.2. ‘Factor income to abroad’ is the factor income paid to the normal residents of other countries (i.e. non-residents) for their factor services within the economic territory.
1. ‘Factor income from abroad’ is the income earned by the normal residents of a country from the rest of the world (ROW) in the form of wages and salaries, rent, interest, dividend and retained earnings.2. ‘Factor income to abroad’ is the factor income paid to the normal residents of other countries (i.e. non-residents) for their factor services within the economic territory.Significance of NFIA:
1. ‘Factor income from abroad’ is the income earned by the normal residents of a country from the rest of the world (ROW) in the form of wages and salaries, rent, interest, dividend and retained earnings.2. ‘Factor income to abroad’ is the factor income paid to the normal residents of other countries (i.e. non-residents) for their factor services within the economic territory.Significance of NFIA:NFIA is significant to differentiate between ‘Domestic Income’ and ‘National Income’.