Open economy, Managerial Economics

Open Economy

None of the three economies considered so far are engaged in trade with Foreign Countries.  Such economies are often referred to as Closed Economies.  In contrast, open economies engage in significant amounts of foreign trade, so that some of the goods produced at home are sold a broad while some of the goods sold at home are produced abroad.  The model is more applicable in real life.

Posted Date: 11/28/2012 6:45:17 AM | Location : United States

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