An open economy is one that

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An open economy is one that trades with other countries, allowing for the exchange of goods, services, and capital across national borders. This can lead to increased economic opportunities and growth as well as increased risks and vulnerability to external shocks. A flexible exchange rate may be a characteristic of an open economy, but it is not a defining feature. The reliance on a market system versus central planning is not necessarily linked to the degree of openness of an economy.

An Open Economy Is One That