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Question
When does Net Factor Income from Abroad (NFIA) shows Negative Value?
Solution
NFIA shows negative value when factor income from abroad exceeds factor income to abroad.
NFIA = Factor income from abroad - Factor income to abroad
Suppose, Factor Income from abroad = ₹ 40
Factor Income to abroad = ₹ 60
Then,
NFIA = ₹ (40 - 60)
= ₹ (-20)
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