Give an example of an item included in the balance on secondary income.
Question
Give an example of an item included in the balance on secondary income.
Solution
Sure, here is an example of an item included in the balance on secondary income:
Remittances sent by migrant workers to their home country.
Step by Step Explanation:
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Secondary income refers to transfers of income from one country to another. These transfers do not involve a corresponding exchange of goods or services, capital transfers, or financial instruments.
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One common example of secondary income is remittances sent by migrant workers.
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Migrant workers often leave their home country to find work in another country. They typically send a portion of their earnings back to their home country to support their families.
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These remittances are considered secondary income because they are unilateral transfers of income. The migrant worker is not receiving any goods, services, or financial instruments in exchange for the money they send home.
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Therefore, remittances sent by migrant workers to their home country are included in the balance of secondary income.
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