When domestic territory is defined in terms of economics, it means the economic territory that refers to the geographical territory which is administered by a government within which the persons, goods, and capital are circulated freely.
The following pointers are included in the domestic territory:
- Territorial waters of the country are part of the domestic territory.
- Ships and aircraft that are operated by the residents of the country are spread across the different parts of the globe.
- Well-known establishments such as embassies, consulates, and military of a country are located in abroad.