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If the Indian embassy is located in Japan, whose domestic territory is it considered part of under the concept of economic territory?

Answer and explanation

Correct answer: India's

Economic territory is not identical to a country's physical geographical boundaries. It includes certain enclaves such as embassies and diplomatic missions located abroad. Therefore, an Indian embassy in Japan is treated as part of India's economic territory for national accounting purposes. The production or services associated with it are considered under the relevant accounting rules of India.

Related tags

GdpEconomic TerritoryEmbassyNational AccountingGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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