We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Definition and Explanation of Closed and Open Economic Systems - Essay Example

Comments (0)
Summary
The researcher of this essay aims to define and explain a closed system of the economy and provides an example on the subject. This essay also analyzes the contradictory counterpart of a closed economy, that is the open economy, where goods and services of a country flow in international terms…
Download full paper
GRAB THE BEST PAPER
Definition and Explanation of Closed and Open Economic Systems
Read TextPreview

Extract of sample
Definition and Explanation of Closed and Open Economic Systems

Download file to see previous pages... ic system are trading of goods and services at international levels and engaging in import and export of goods and services between various countries. Therefore there is no doubt that this leads to inner and outer flows. It may be goods and services in the form of import and export or the flow of resources, such as labor, capital and currency. The flow of labor is in two ways: emigration and immigration. Emigration means the outer flow of people to different countries, whereas immigration is the inner flow of laborers into the country. Capital flow refers to foreign trade investment. Defines and explains leakages in an open system. In the open system, a there is financial model that computes the goods and services exchanged nationally. The leaks in the open system include all transactions of foreign countries. “In an open system, taxes are included in the model to show government purchases and inject money back in to the economy” (The Mechanics of Open and Closed System, 2012, para. 4).  Funds being lost due to purchases of foreign facilities can also be seen in the open system. Another structure of leakage that can happen is when US industries outsource their capital OR labor to foreign countries. Even though the industry is saving and can currently make extra profits, the cash that is leaked may not be regained later. Define and explain injections in an open system. An injection happens when a foreign or individual company purchases American commodities or facilities. If a foreign industry hires workers belonging to the US, the wages deserved by the employees are measured and injected back into the financial system. Similarly, when the local government produces purchases in America or provides facilities like welfare, the cash is injected back into the...
This essay discusses the closed economy, that is the opposite of an open economy. In a closed economic country, that were analyzed in this essay all economic activities are conducted within the boundary of the country. Such an economy is an independent economy, which means the country does not accept imports from other countries and also does not export to foreign countries. The main objective of this type of economy is to make everything available for people within the confines of the economy. Thus, it can be stated that such a country will not engage in any type of trade or have even the slightest of interactions with other countries. However, it can be seen that in the modern times closed economic countries are very rare. For example, China was a closed economy earlier and then transformed into an open economy, when the China Government understood the benefits that come along with being an open economy. Hovewer, the researcher also mentions that Brazil remains one of the most closed economies in the world today. Today, an industry aims to give more US jobs in addition to create earnings from selling to foreign countries is the important example of injection. The company “green” was identified Wind Sail Reception, Inc. is situated in Nevada and has been creating turbines to change wind to power since the year 2002. The industry sells to American energy services and European services. The income created from the European market is measured a cash injection to the economy of the United States. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Consumer behavior: definition, importance, theoretical explanation
The behavioural patterns of the customers had been a subject of interest to the researchers since long. The initiative to understand the significant factors that act as basis in the decision making process of customers was initially considered by the early economists.
10 Pages(2500 words)Essay
Explain the difference between an open economy and a closed economy
As eHow.com puts it, “a closed economy is just a theoretical concept as no perfectly closed economies are still in existence.”1Globalization has led to removal of barriers to trade and allowed flow of capital and employees in and out of the country. Advocates of an open economy argue that opening the country to international trade creates employment, provides a variety of goods and services to consumers at low prices, increased investment opportunities as well as economic growth.
5 Pages(1250 words)Essay
Open Systems: A Conceptual Analysis
The development of concepts is paramount to the general process of development of knowledge in the area of healthcare and medical studies. According to Meleis (2010), naming and explication of different concepts dictates the thinking and perception of people.
7 Pages(1750 words)Essay
Open Source Versus Closed Source Software
The open source software’s license neither discriminates against a person / group nor any field’s endeavor. The license of the open source software must not be specific to any product and restrict other software, whereas, the license should be technology neutral (Open Source Initiative, n.d).
5 Pages(1250 words)Essay
Strategic Leadership: Open & Closed Systems
. A critical analysis may indicate that this responsiveness defines basic organizational processes and internal practices. For the purpose of understanding open and closed systems, organizational models of SAS.com and Armed forces are studied.
3 Pages(750 words)Essay
Open and closed systems
A closed economy sustains itself and the major players include households, firms, government as well as market factors. A good example of a closed economy is where a country does not deal with other foreign economies. The outer flow in the closed economy is one way.
3 Pages(750 words)Essay
Property and its Economic Explanation
Legal right to property means that one will be able to rely on the protection of governmental agencies in case these rights are encroached upon. But different types of rights enjoy different degrees of legal protection (Ibid). Property law influences the allocation of scarce resources and goods and services, but property law differs from state to state.
5 Pages(1250 words)Essay
Comparing The Success & Future Of Open & Closed Source Software
Open Source software has been emerging as an increasingly viable option for organizations in the future. Software such as Java 2 Enterprise Edition and Linux have high levels of potential for development into OSS middleware that would
12 Pages(3000 words)Essay
Bribery and Corruption in China's Construction Industry
nature of Chinese construction industry and guanxi are the factors that create the condition for the perpetuation of bribery and corruption in the Chinese construction industry. A literature search, quantitative and qualitative data are gathered to get hold of primary data
32 Pages(8000 words)Essay
Open and Closed Source Systems
(Open Source Initiative, n.d). Currently, there are a huge number of categories of the open source software that include but not limited to the Application Software, Operating Systems, Programming
1 Pages(250 words)Essay
Let us find you another Essay on topic Definition and Explanation of Closed and Open Economic Systems for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us