Factor payments to foreigners represent remittances from domestic residents to foreigners.

Question

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Factor payments to foreigners represent payments made by domestic residents to foreigners for the use of foreign-owned resources, such as labor or capital, within the domestic economy. Remittances, on the other hand, refer specifically to money sent by individuals working abroad to their families or communities in their home country.

Factor Payments to Foreigners Represent Remittances from Domestic Residents to Foreigners