what are the advantages and disadvantages of open economies and closed economies? How has covid and other recent events with the supply chain impacted these types of economies?
what are the advantages and disadvantages of open economies and closed economies? How has covid and other recent events with the supply chain impacted these types of economies?
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Made sure you differentiate portfolio investments from FDI. Can we argue that a "A closed economy, however, is entirely self-sufficient", or if it is, at what costs?
An open economy is one that engages in international trade of goods, services, and financial assets. An open economy participates in a variety of trade activities with foreign nations. A country's market can be expanded in a way that a closed economy can never do. It buys shares, debentures, bonds, and other types of securities from foreign nations and sells them to countries abroad. Normal people of an open economy are free to travel and work wherever they wish in that economy's domestic boundaries. A closed economy, however, is entirely self-sufficient, which implies that neither imports nor exports ever leave the nation. The objective of a closed economy is to provide all domestic consumers' needs from inside its boundaries. It does not import goods or services from other nations or export goods or services to them. Normal citizens in a closed economy cannot leave their native country to work in other nations. On the domestic territory of a closed economy, no foreigner is allowed to work.
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