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 .
