Net factor income from abroad can never be negative. Defend or refute the given statement with valid argument.

The given statement is refuted.

Net factor income from abroad is the difference between factor income earned from the rest of the world and factor income paid to the rest of the world.

If the value of factor income paid to the rest of the world is greater than the factor income earned from the rest of the world, the resulting value (net factor income from abroad) can be negative.