Explain Domestic Territory and Normal resident of country with examples.

Solution

Domestic territory: It  is the geographical territory administered by a government within which persons, goods and capital circulate freely.” It includes (i) Territory lying within the political frontiers of a country. It includes territorial waters also (ii) Ships and air crafts owned and operated by the residents between two or more countries domestic territory of India.(iii) Fishing vessels, oil and natural gas rigs and floating platforms operated by the residents of a country in the international waters(iv) Embassies, consulates and military establishments of the country located abroad

Normal Resident of a Country: Normal resident is one who ordinarily resides in the country concerned and whose centre of economic interest lies in that country. 
A person is said to have his economic interest in a country when he conducts his economic transactions in the country in which he resides on a significant scale.

So Normal residents includes :
a) Citizens and institutions of a country who normally resides and whose centre of economic interest lies within that country
b) Citizens of other countries who continue to live in our country for a period more than one year and whose centre of economic interest lies within our country
c) Citizens of our country working in international organisations like, World Bank and IMF.