open economy


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Open Economy

An economy in which participants are permitted to buy and sell goods and services with other countries. The GDP of open economies includes exports (which add to GDP) and imports (which subtract). Some very open economies have few or no trade restrictions such as tariffs, but this is rare in practice. Nearly every economy in the world is an open economy to a greater or lesser extent.

open economy

an economy that is heavily dependent on INTERNATIONAL TRADE, EXPORTS and IMPORTS being large in relation to the size of that economy's NATIONAL INCOME. For such economies, analysis of the CIRCULAR FLOW OF NATIONAL INCOME must allow for the influence of exports and imports. Compare CLOSED ECONOMY.
References in periodicals archive ?
With an open economy we are also open for cooperation with any country including Japan," she said.
Macedonia is an open economy but most of its economic partners are in Europe.
Trips to Cuba from Spain by government officials and business leaders have jumped this year as Spain rushes to make the most of what is becoming a more open economy on the Caribbean island.
And we, as representatives of the open economy, where trade exceeds GDP, are affected by the fact that markets are falling.
The EDB promotes Bahrain through its roadshows that highlight the country's competitive advantages that include being the gateway to the region, having a skilled bilingual workforce and an open economy.
Ireland is a modern, open economy that encourages inward investment and international cooperation.
To restore growth and raise living standards, it is critically important for policymakers to expand efforts to marshal the island's considerable strengths--a bilingual and well-educated adult population, an open economy occupying a central position in the Caribbean, a wide experience as a host to multinational corporations, and close ties to the U.
Moscow can benefit from UAE's advantages of an open economy
Chidambaram, who was replying to a discussion on the country's economic situation in the Lok Sabha, said the country needs more reforms, lesser restrictions and an open economy.
Qatar's strategic vision aims to develop a competitive and open economy by relying on the surplus from oil, gas and foreign investment.
Anton Koudasov, Deputy Minister of Economy, Belarus , said that Belarus and the UAE have a lot in common like both being the gateways to their particular regions, having an open economy and business-friendly policies which can be used to their advantage in enhancing bilateral ties between the two countries.
He said that United States is the largest and most open economy to trade and investment in the world and it allows Pakistan to export jewellery, many types of carpets, agricultural products, minerals, and marble without paying any kind of duty, he disclosed.