Question

An “open economy ” is an economy in which

a) Foreign investment is allowed

b) Foreigners can stay for an indefinite time period

c) License is not required to start a business

d) Exports as well as imports take place​

Answer 1

Answer:

I guess answer is option a

Answer 2

• Open-Economy is an economy where international trade is allowed.
• Open-Economy is a type of economy when not only the domestic factors but also the factors outside the borders affect the business.
• There is an exchange of managerial talent, technology, raw materials, and all kind of finished goods and services.
• On the other hand, a closed economy is a kind of economy where there is no import from another country and no exports to the other.
• Unlike the Open Economy, close one has no economic relations with the rest of the world.