The primary income component in a country's current account may reflect income received due to:

Question

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Direct foreign investment is a common source of income in a country's current account. It refers to investments made by foreign companies or individuals in the country's businesses, properties or capital markets. This investment generates income in the form of profits, dividends or interests which adds to the country's current account balance. While grants, aid and gifts may also contribute to a country's income, they are not the primary components of the current account.

The Primary Income Component in a Country's Current Account May