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The disadvantage of Open economies is that trading goods and services which the country domestically specializes in could be a drawback since they might fall short of the supply of those goods and services according to the required demand. a good example of this is Thailand. The country specializes mainly in stable food such as rice production .excessive exporting to raise money and capital causes a shortage of supply for the domestic consumers. It creates low interest rates and subsidies .When Americans invested in housing in other countries they didn't benefit fully from investment because there is a split between the people who own the capital and the owners of labor it created debt, the money was tied up in housing.with an open economy there is no gain through foreign exchange either.
What else can I help you with?
Is open end economy better than closed economy?
no
What you mean by open economy and closed economy?
By open economy it means that economy in which private people are allowed to participate in making economic decisions while,by closed economy it means the economy in which the government is the one planning for the whole society
What are some disadvantages of the Market Economy?
The market economy has many advantages, but it also has its share of disadvantages. Two of the main disadvantages are that this type of economy can be very unstable and it tends to cause a large gap in the distribution of income.
Is Russia a small open economy or large open economy?
Large open economy.
What are the advantages and disadvantagesof a market economy?
advantages and disadvantages of market economy
Is open end economy better than closed economy?
no
What you mean by open economy and closed economy?
By open economy it means that economy in which private people are allowed to participate in making economic decisions while,by closed economy it means the economy in which the government is the one planning for the whole society
Is Ireland an open or closed economy?
It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.It is an open economy.
What are the disadvantages of closed loop systems?
its costly than open loop system and bulky, too.
what is the disadvantages of closed office?
its closed
How do the governments of north and south Korea affect their economies?
The government of North Korea is mostly closed to the outside world. This makes for a pretty stagnant economy. The government of South Korea is more open, and has a more vibrant economy.
Show me open and closed syllables?
"Show" is open, "and" is closed. O- is open, -pen is closed. "Closed" is closed.
What is a closed economy?
An economy that does not import or export goods
Is Russia a small open economy or large open economy?
Large open economy.
What is open when its closed and closed when its open?
a construction site?
What are some disadvantages of the Market Economy?
The market economy has many advantages, but it also has its share of disadvantages. Two of the main disadvantages are that this type of economy can be very unstable and it tends to cause a large gap in the distribution of income.
What are the advantages and disadvanges of closed open guestions?
Advantages of closed questions: 1. Provide specific, concise information 2. Easy to answer and analyze Disadvantages of closed questions: 1. Limit depth of response 2. May not capture nuances or complexities
