1.

 Explain that Domestic territory is bigger than the political frontiers of a country.

Answer»

The Domestic territory of a nation is understood to be the territory lying within the political frontiers of a country. But in the National income accounting the term domestic territory is used in a wider sense. 

Based on freedom criterion, the scope of economic territory is defined to cover-

  • Ships and aircrafts owned and operated by normal residents between two or more countries. 
  • Fishing vessels, oil and natural gas rigs and floating plate forms operated by the residents of a country in international waters where they have exclusive rights of operations. 
  • Embassies , consulates and military establishments of a country located abroad .


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