Explain briefly what is a Closed Economy And Open Economy.

November 27th, 2009 Comments off
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Closed Economy:

  • An economy having no external trade which is completely self-sufficient and insulated from external forces

Opened Economy:

  • An economy which has been engaging in international trade.

  • Degree of openness of the economy may be approximated by the size of its foreign trade sector relative to its gross domestic product.

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