Surely everyone will agree with the fact that no country in the world today is not completely isolated from foreign economic relations.Ultimately, the state still consume more than they produce on its own.This situation leads to the promotion and further development of international trade, and in this case win the same everything - and the exporting country and the importing State.Moreover, in the recent trend of movement of capital between the powers (investment, transfers, loans, etc.).That is why macroeconomic model, of course, includes the operations both on the domestic and foreign markets.In short, it is an example of an open economy.
open economy.The concept
open economy is considered among experts widely integrated into the overall economic system sphere.Note some of its characteristics.First of all, this is definitely participate in the international division of labor, and the absence of obstacles to the export / import of goods and the movement of capital between countries.Specialists conventionally divided this sector of the economy into two types: a small open economy and a large open economy.The first type is represented in the world market only in small proportions.In this case, the world prices and the interest rate has almost no effect.On the other hand a large open economy (for example, Germany, the United States), but rather belong to her country, has a weight of the world's savings and investments directly themselves, therefore, have a direct impact on all of the world price.
Key indicators of an open economy
- Part of the imported goods in consumption.
- Part of exports in the production volume.
- share of foreign investments in comparison with domestic investment.
formation of an open economy
main trend of the post-war decades, the experts call it transition from a closed economy to an open economy directly by the type, that is directed to the external market.It is the United States first announced the thesis about the formation of an entirely new economy and free trade.The goal was only one - to impose on other countries its rules and standards of communication in the international market.Indeed, after World War II, America emerged victorious, and in practice has proved its viability and prosperity, offering a completely different gradual steps the new economic order.Such an appeal taken by many states.Approximately starting from the 60s, such processes are beginning to move in a number of developing countries.Already in the 80 years their number sided with China, and the term "openness" came in many dictionaries.Gradual transition states to plan for an open economy was greatly stimulated and the decisions of multinational corporations, which are around the world to the development of new markets rapidly opened subsidiaries and affiliates, thereby intermittiruya international economic exchange.
