Open economy in the modern world

Surely everyone will agree that noneThe country in the modern world is not completely isolated from foreign economic relations. In the end, states consume more than they produce alone. This state of affairs leads to the stimulation and subsequent development of international trade, in which case everyone equally benefits, both the exporting country and the importer state. Moreover, recently there has been a trend towards capital transfer between the powers (investments, transfers, loans, etc.). That is why the macroeconomic model, of course, includes operations both on the domestic and foreign markets. In a word, it is an example of an open economy.

Open economy. The concept of

open economyOpen economy is considered among specialistswidely integrated into the general economic system by the sphere. Let us note some of its characteristic features. First of all, this, and certainly, participation in the international division of labor, and the absence of obstacles to the export / import of goods, as well as the movement of capital between countries. Experts conditionally subdivide this branch of the economy into two types: a small open economy and a large open economy. The first type in the world market is represented only in small shares. In this case, there is practically no influence on world prices and the rate of interest. On the other hand, a large open economy (for example, Germany, the United States of America), or more precisely the countries belonging to it, possess a significant part of the world's savings and the investments themselves, and therefore have a direct impact on all world prices.

Main indicators of open economyopen economy formation

Forming an open economy

small open economyThe main trend of the post-war decadesexperts call it the transition from closed economies to directly the open economy itself, that is, aimed at the external market. It was the United States of America that first announced the thesis of the emergence of a completely new economy, freedom of trade. The goal was exclusively one - to impose on other states their rules and standards of communication on the international market. Indeed, after World War II, America emerged victorious, but in practice proved its worth and prosperity, offering gradually steps of a completely different new economic order. Many countries have adopted such a call. Approximately since the 1960s, such processes are beginning to advance in a number of developing countries. Already in the 1980s, China joined them, and the term "openness" was included in many dictionaries. The gradual transition of the powers to the plan for an open economy has been largely stimulated by the decisions of transnational corporations that have rapidly opened subsidiaries and affiliates around the world, thereby intermitting international economic exchanges in order to develop new markets.

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