Question

modern economy is _____
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Answer 1

Answer:

youth is the Morden economy

Answer 2

Modern Economy is an Open Economy.

What is an Open Economy?

Open Economy is defined as the type of economic setup in which the different countries are involved in trade between each other.

The concept of Open Economy is often linked with Globalization where the two countries came to each other making the relationship largely based on the Trade related aspects.

Globalization is word or concept came in existence after Second world War. The Globalized world meant the exchange of relations between two countries primarily on the topics of trade and investment. It is totally opposite to the principle of Closed Economy.

The features of Open Economy are :-

• It provides Consumers with varieties of options in selection of any Item needed.
• Open Economy also provide level playing field and help to reduce Monopoly.
• This ensures healthy competition in the market so that the consumers gets their desired product with good quality and low cost also.
• It attracts the foreign Investments in the form of Foreign Direct Investment(FDI), Foreign Portfolio Investment(FPI) and Foreign Institutional Investment.
• Open Economy leverage the idea of setting up of Multi National Companies which can give employment push in the country.

Thus, Modern Economy is an open economy with the sustaining level of growth in a country and beneficial to all across the world.

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