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The primary income component in a country's current account may reflect income received due to?

1) grants
2) direct foreign investment
3) aid
4) gifts

1 Answer

4 votes

Final answer:

Direct foreign investment is the primary income component in a country's current account.

Step-by-step explanation:

The primary income component in a country's current account may reflect income received due to direct foreign investment. Direct foreign investment refers to when a company or individual from one country makes a substantial investment (such as buying a controlling stake in a company) in another country. This can generate income for the country receiving the investment, resulting in a positive balance in the current account.

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