indian residents working in american embassy in india will be included in domestic income and national income of our coutry? plzz explain separately with examples
Hey Riya,
I think you might be asking about the inclusion of salaries and wages earned by Indian residents working in American embassy in India in domestic income and national income. To understand this concept you should know the difference between the domestic income and national income. Basically, Domestic income and National Income are distinguished on the basis of the Net factor Income From Abroad (NFIA). While Domestic income includes factor income paid only to the domestic residents of the native country with the domestic territory of a country, on the other hand, National income besides including the factor income paid to the domestic residents, also includes the factor income paid to the domestic residents residing on the foreign lands. In simple words, Domestic income excludes NFIA, whereas, National income includes NFIA.
1. Salaries and wages earned by Indian residents working in American embassy in India will not be included in domestic income. This is because the American embassy does not lies in the domestic territory of India.
2. Salaries and wages earned by Indian residents working in American embassy in India will be included in national income as it is a part of the Net Factor Income from Abroad.
Keep Posting!!
I think you might be asking about the inclusion of salaries and wages earned by Indian residents working in American embassy in India in domestic income and national income. To understand this concept you should know the difference between the domestic income and national income. Basically, Domestic income and National Income are distinguished on the basis of the Net factor Income From Abroad (NFIA). While Domestic income includes factor income paid only to the domestic residents of the native country with the domestic territory of a country, on the other hand, National income besides including the factor income paid to the domestic residents, also includes the factor income paid to the domestic residents residing on the foreign lands. In simple words, Domestic income excludes NFIA, whereas, National income includes NFIA.
1. Salaries and wages earned by Indian residents working in American embassy in India will not be included in domestic income. This is because the American embassy does not lies in the domestic territory of India.
2. Salaries and wages earned by Indian residents working in American embassy in India will be included in national income as it is a part of the Net Factor Income from Abroad.
Keep Posting!!