Ways to address the occurrence of negative net factor income from abroad

Question

Business

Stout

3 December, 02:46

Ways to address the occurrence of negative net factor income from abroad

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Answers (1)

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Alia Duarte · Answer 1

Answer: The net factor income can be positive or negative.

Explanation:

The net factor income becomes negative when income obtained by the foreigners or native of abroad from our country is more than the income earned by us while working in abroad. This can be positive when former is less than the later.

The ways to address the negative net factor income are as follows:

1. Availing compensation from employers.

2. Earning on direct investment.