Answer:

Introduction: Net Factor Income From Abroad (NFIA) is the difference between income earned by domestic factors of production in foreign countries and the income earned by foreign factors of production in the domestic country. It is a part of the current account of the balance of payments.

Explanation:

If exports are equal to imports, then there will be no net factor income from abroad. This is because the income earned from exports is equal to the income spent on imports.

Let's understand this with an example. Suppose a country exports $100 worth of goods and services to a foreign country. In return, it imports goods and services worth $100 from the same country. In this case, the income earned from exports is $100, and the income paid for imports is also $100. Therefore, the net factor income from abroad is zero.

Implications:

When a country has a positive net factor income from abroad, it indicates that the country's factors of production are earning more income from foreign countries than foreign factors of production are earning in the domestic country. On the other hand, when a country has a negative net factor income from abroad, it implies that foreign factors of production are earning more income in the domestic country than the country's factors of production are earning in foreign countries.

Conclusion:

In conclusion, if exports are equal to imports, then there will be no net factor income from abroad. However, if exports are greater than imports, then the net factor income from abroad will be positive, and if imports are greater than exports, then the net factor income from abroad will be negative. The net factor income from abroad is an important indicator of a country's international economic relations and can help to assess the country's economic health.

yes because NFYA=exports-imports