Question

Long Answer Type Questions
Explain the concept of normal residents.

Answer 1

The normal resident is said to be one who ordinarily resides in the country concerned and whose center 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 that country on a significant scale. Normal residents include:

a) Citizens and institutions of a country who normally resides and whose center of economic interest lies within that country

b) Citizens of other countries who continue to live in our country for a period of more than one year and whose center of economic interest lies within our country.

c) Citizens of our country working in international organizations like World Bank and IMF.