Question

Difference between domestic territory and economic territory

Answer 1

According to United Nation, “Economic territory is the geographical territoryadministered by a government within which persons, goods and capital circulate freely.” ... (Remember that income generated within domestic territory during a year is calleddomestic income.)



According to United Nation, “Economic territory is the geographical territory administered by a government within which persons, goods and capital circulate freely.”Clearly, freedom of circulation of persons, goods and capital is the basic criterion of economic territory for including in it.