open economy


Also found in: Wikipedia.

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 ?
The Minister emphasized Georgia's trade agreements with its partners: "Georgia is a unique country with an open economy, with the simplicity of doing business on the ninth spot and the eighth place with open economy, Fraser Institute estimates.
The UAE has always been an open economy allowing the flow of people from all levels of society from all over the world.
The projects were okayed by the executive committee of the Abu Dhabi Executive Council in line with Abu Dhabi Plan to achieve a secure and confident society that aims at developing a competitive, sustainable and globally open economy, reported state news agency Wam.
Macedonia is a small country and an open economy whose prosperity depends on what's happening in the European countries where 70 percent of its production is exported.
Global Banking News-May 29, 2017--Botswana central bank wants government to follow open economy
An open economy, the discipline of competition and free trade have served the UK well over the past four decades.
Participants affirmed commitment to building an open economy and free trade, as well as confronting protectionist measures in the "Belt and Road" initiative, a final communique said.
The National Front's Le Pen would close borders and quit the euro currency, while independent Macron, who has never held elected office, wants closer European cooperation and an open economy.
Foreign policy experts suggest that Trump may pose a test to the post-WWII international order, led by the United States and shaped by alliances, an open economy and support for liberal institutions.
Australia's interests in the Philippines will be pursued through the development of a well-managed and stable Philippine government and a more prosperous, inclusive and open economy.
The nature of Ireland's small, open economy means that we remain vulnerable to global economic volatility and uncertainty.
South Korea's economy, the fourth largest in Asia, is categorized as a small open economy for its heavy dependence on exports and massive foreign investments in its equity market.