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 ?
Increased transparency is now appreciated to be an essential component of development conditions that enable open economies and open societies to thrive.
Moreover, the country remains vulnerable to external factors apart from volatility in oil prices, given its relatively small population of about 30 million and one of the more open economies in Asia.
The conference, which will explore the role of Arab women in supporting open economies and inclusive growth, aims to create new business partnerships between G8 and Arab business women to achieve shared prosperity, said a media statement.
Though both countries are small open economies, there are a lot of differences.
Regarding economic situation in Bulgaria, the expert pointed out the reforms are fundamental, but take time, stressing that quality infrastructure is a must for long-term economic growth, particularly for more open economies as it is the Bulgarian one.
Tunisia, which has one of the most open economies in north Africa and close economic ties to Europe, has received e1/42,6-billion in loans and aid from the European Investment Bank over the last three decades.
Bernanke said countries with the most open economies, such as Singapore, Hong Kong and Taiwan suffered the most as a result of the global crisis.
Summary: Chile, globally acclaimed as one of the most vibrant and open economies in the world,
There is anecdotal evidence to suggest that infrastructure provision is significantly higher in open economies than in closed ones.
To reiterate the commitment of the United States to open investment and trade, President Bush released an important policy statement in May, 2007 reaffirming our longstanding support for open economies.
Mr Blair will say: "In the era of open economies a flexible labour market is desirable, indeed necessary.
The Heritage Foundation and Wall Street Journal rate El Salvador among the most open economies of the world, second in Latin America, and 24th worldwide.