Abstract: Analysis shows that domestic principle focuses on the resident attributes of producer ( whether or not be a resident producer). While national principle focuses on the resident attribute of production factors ( whether or not be a resident production factor). But both of them set up on the common foundation (the resident attribute of the economic unit) . The so-called territory criterion has the absolute different meaning compared with the two aforementioned terminologies. It only has regional or space meaning, but not have the meaning of resident provision.