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 ?
In this East Asia Forum, the pariticipants will discuss under the theme of Bolstering Free and Open Economy in East Asia
"Optimal Monetary Policy in a Small Open Economy with Home Bias." Journal of Money, Credit, and Banking, 2008,40(4), pp.
He said that the goals in the economic field next year are focused on creating an open economy, enabling people to better adapt to the development of market economy, maintaining liberalization of foreign exchange market, combating the shadow economy, and increasing labor productivity and employment opportunities through active entrepreneurship.
"Malaysia, as an open economy, is susceptible to global trend.
Prime Minister Modi also noted that India is the most open economy in respect to Foreign Direct Investment (FDI)."In the past years we have done quite a lot of reforms in the field of FDI.
He said: "Coupled with our open economy and strong background in both technology and financial services, this will add to the opportunities already available for the creation of higher value jobs."
This is next to only China and the US." Salgado said spillovers from India are not that big because it is not a very open economy.
FX Update: The yen underperformed for a second day, while the dollar bloc currencies outperformed after China's President Xi struck a conciliatory tone, pledging a more open economy and lower tariffs for automobile imports, at his keynote speech before the Boao Forum today.
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