An economy that trades freely with the rest of the world is called a(n)________ economy.

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An open economy is one that engages in international trade and commerce, allowing the free flow of goods and services across its borders. In contrast, a closed economy is one that does not engage in international trade and maintains strict control over its domestic markets. Command and communist economies are characterized by government control and ownership of resources and the means of production.

An Economy That Trades Freely with the Rest of the World