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.
Frequently asked questions
What is the correct answer to this question?
India's
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
