Question

Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports (X -- M).

Hint:

NFIA relates to income flows from factors of production; Net Exports covers trade in goods and services.

Answer 1

NFIA	Net Exports (X – M)
It is the difference between factor income earned from abroad and factor income paid to abroad.	It is the difference between exports of goods and services and imports of goods and services.
Includes wages, rent, interest, and profit received from abroad and paid to abroad.	Includes trade in visible and invisible items (goods and services).
Component of National Income.	Component of Domestic Product.