Explain with an example, factor income to abroad and factor income from abroad.

Factor income to abroad- It is the factor income earned by non-residents, who are temporarily residing in our country.

Example- Salaries of Americans working in Indian embassy in America.

Factor income from abroad- it is the factor income earned by our residents, who are temporarily residing abroad.

Example- salaries of Indians working in Russian embassy in India.

Net Factor Income from Abroad- NFIA is the difference between factor income earned by our residents from rest of the world and factor income earned by non – residents within the country.

NFIA = Factor income from Abroad – Factor Income to Abroad.