Domestic territory: In common language, the domestic territory of a nation means political territory of a nation. In economics, it refers to economic territory which refers to the geographical territory administered by a government within which persons, goods and capital circulate freely. Domestic territory of a nation includes the following:
a) Territory lying within the political frontier including territorial waters of a country.
b) Ships and air crafts operated by residents of the country across different parts of the world.
c) Embassies, consulates and military establishments of a country located in abroad.