Will the following factors income be included in domestic factor income of India? Give reasons for your answer.
(i) Compensation of employees to residents of Japan working in Indian embassy in Japan.
(ii) Profits earned by a branch of foreign bank in India.
(iii) Rent received by an Indian resident from Russian embassy in India.
(iv) Profits earned by a branch of State Bank of India in England.
Only those factor incomes will be included in domestic factor income of India which have been earned/generated in domestic (economic) territory of India.\
(i) It will be included because Indian embassy in Japan is a part of domestic territory of India.
(ii) It will be included because profits are earned in domestic territory of India.
(iii) It will not be included because rent is earned from Russian embassy in India which is treated as part of domestic territory of Russia.
(iv) It will not be included because profits are earned in England.
