Explain components of Net factor Income from Abroad.

1.	Explain components of Net factor Income from Abroad.
Answer» There are three components of NFIA Net Compensation of Employees- It is the difference between compensation received by residents and compensation given to non-residents working within the domestic territory of the country. Net Income from Property and entrepreneurship- it is equal to difference between the income received by way of interest, rent and profits by the residents of a country and similar payments made to rest of world. Net retained earnings of residents companies abroad- It is the difference between undistributed profit received from abroad by residents companies and undistributed profit paid to non-residents companies to abroad.

Answer»

There are three components of NFIA

Net Compensation of Employees- It is the difference between compensation received by residents and compensation given to non-residents working within the domestic territory of the country.
Net Income from Property and entrepreneurship- it is equal to difference between the income received by way of interest, rent and profits by the residents of a country and similar payments made to rest of world.
Net retained earnings of residents companies abroad- It is the difference between undistributed profit received from abroad by residents companies and undistributed profit paid to non-residents companies to abroad.

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Explain components of Net factor Income from Abroad.

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