1.

State the components of “net factor income from abroad”.

Answer»

The normal resident of a country earn income from abroad and income is paid to non-residents for their factor services within the domestic territory. The difference between these two is net factor income from abroad. 

Components : 

(1) Net compensation of employees. 

(2) Net income from property and entrepreneurship. 

(3) Net retained earning of resident companies from abroad. 



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