1. Gross value added at factor cost (formerly GDP at factor cost) is derived as the sum of the value added in the agriculture, industry and services sectors.

2. Gross domestic product at factor cost: The gross domestic product at market prices minus the difference between indirect taxes and subsidies.

3. Another element that might be expected to influence location of economic activity will be the extent of differentials in factor costs.

4. On one hand, technological progress leads to the reduction of factor cost and elimination of the former labor force, which affects the employment.

5. Actually the existence of comparative advantage is the result of relative difference between labor productivity and factor cost.

6. If the value added of these sectors is calculated at purchaser values, gross value added at factor cost is derived by subtracting net product taxes from GDP.