193k views
5 votes
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.

User Daniel Hall
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories