Will the following factor incomes be included in domestic factor income of India? Give reasons.
(i) Profits earned by a foreign bank from its branches in India.
(ii) Salary received by Indian residents, working in American embassy in India.
(iii) Profit earned by Indian company from its branches in Singapore.
(iv) Compensation of employees given to residents of China working in Indian embassy in China.
Remember, only those factor incomes which have been generated/earned in India's domestic (economic) territory will be included in domestic factor income of India.
(i) It will be included because the profits have been earned in Indian domestic territory.
(ii) It will not be included because salary has been earned in American embassy which is considered a part of American territory (not of Indian territory).
(iii) It will not be included because profits are earned in a foreign country.
(iv) It will be included because Indian embassy in China (or in any other part of world) is considered a part of India's domestic territory.
