Net Factor Income from Abroad is taken into account when National Income is calculated by:

Question

Quizplus · Accepted Answer

Net Factor Income from Abroad (NFIA) is added or subtracted from the domestic income to arrive at the National Income, regardless of the method used (value added, income, or expenditure method). Each of these methods ultimately aims to measure the same economic activity from different perspectives, and adjusting for NFIA ensures that the income generated by a nation's residents is accurately captured, regardless of where it was earned.

Net Factor Income from Abroad Is Taken into Account When