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Will the following factor incomes be included in domestic factor income of India? Give reasons for your answer.(i) Compensation of employees to the residents of Japan working in Indian embassy in Japan. (ii) Profits earned by a branch of foreign bank in India. (iii) Rent received by an Indian resident from Russian embassy in India. (iv) Profits earned by a branch of State Bank of India in England. |
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Answer» (i) Yes, It will be included in domestic factor income of India because the Indian embassy in Japan is a part of domestic territory of India. (ii) Yes, It will be included in domestic factor income of India because the foreign bank is located in the domestic territory of India. (iii) No, It will not be included in domestic factor income of India because Russian embassy in India is not a part of domestic territory of India. (iv) No, It will not be included in domestic factor income of India because branch of State Bank of India which is earning profit is in England which is not a part of domestic territory of India. |
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