The wage earned by a domestic resident working in a foreign company for a month is an example of a ________.

Question

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The wage earned by a domestic resident working in a foreign company for a month is a factor payment from foreigners, as the foreign company is paying the domestic resident for their labor. Transfer payments involve the transfer of funds without an exchange of goods or services, which is not the case here. A factor payment to foreigners would be when a foreign resident is paid for their labor in the domestic country.

The Wage Earned by a Domestic Resident Working in a Foreign