What is the closed economy?

He considered today's anomaly in the world, the closed economy is a strategy that focuses all economic transactions inward rather than outward. The idea of ​​a closed economy is to satisfy all the needs of consumers with the purchase and sale of goods and services that are produced internally. In addition to satisfying the needs and desires of all consumers in the economy, the method also excludes the possibility of exporting goods and services. The economy is therefore considered completely self -sufficient.

When the concept of a closed economy is applied to a geographical location, such as the country, the system is usually referred to as autarents. In principle, it is largely large to a large extent to prevent trade with other countries. Using natural resources and combined talents of the population, the country will try to meet all the needs and needs of the country through the development and application of all materials located in the geographical borders of the nation.

Closed economies are the opposite of open economies. With an open economy is most ZBIt is exported to customers around the world. At the same time, the open economy actively supports the import of any goods or services that cannot be produced on the domestic market at competitive prices. The open economy motivates the interaction in the global community, while the closed economy is definitely based on the concept of isolation from other countries.

In today's world, the idea of ​​a closed economy has become less practical. Almost every country in the world works using imported goods of some type. At the same time, most countries actively seek to develop goods and services that can be produced at low costs and are sold elsewhere with considerable profit. Even in religious communities that were once able to maintain closed economics within the agrarian society, the trend should include a certain level of economic interaction with a wider community.