Consider the following data relating to the financial year 2021-2022 and answer the following questions based on this data.

How do you calculate the value of net factor income from/ to abroad in the given question?

NDP_MP  – NNP_MP

The correct answer is Option 3: NDP_MP  – NNP_MP

NNP_MP =  NDP_{MP +} NFIA

When there is Net Factor Income from Abroad, it will mean NNP_MP > NDP_MP.

Thus, in this case Net Factor Income from Abroad= NNP_MP – NDP_MP.

When there is Net Factor income to Abroad, it will mean NDP_MP > NNP_MP

Thus, in this case Net Factor Income to Abroad=NDP_MP  – NNP_MP

Given,

NDP_MP =1,00,000

NNP_MP =90,000

NFIA= 90,000-100000 = -10,000 (Net Factor Income To Abroad)

In this case, since there is Net Factor Income to Abroad, NFIA =NDP_MP  – NNP_MP

Alternatively,

GNP_MP =  GDP_{MP +} NFIA

NFIA = GNP_MP - GDP_MP

Option 1: GNP_FC – GNP_{MP is}Incorrect

GNP_FC =  GNP_MP - NIT

GNP_FC  = GDP_{MP +} NFIA - NIT

Thus, GNP_FC – GNP_MP = NFIA-NIT

Option 2: GNP_MP – NNP_MP is incorrect

GNP_MP =  GDP_{MP +} NFIA

NNP_MP =  NDP_{MP +} NFIA

GNP_MP – NNP_MP= GDP_{MP +} NFIA- NDP_{MP -} NFIA