The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's

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Net factor payments from abroad are the difference between income earned by a country's residents from abroad and income earned by foreigners in the country. In this case, country A's residents earn $500 million from abroad, while foreigners earn $200 million in country A. Therefore, the net factor payments from abroad are $300 million ($500 million - $200 million). Since this figure is positive, it means that country A's GNP (Gross National Product) is larger than its GDP (Gross Domestic Product). This is because GNP includes income earned by a country's residents from abroad, while GDP only includes income earned within a country's borders.

The Residents of Country a Earn $500 Million of Income