If there is no trade between an economy and other economies, it is said to be Closed Economy. Therefore, the closed economy is totally self-sufficient, meaning that no imports nor exports enter the nation. Proponents of a closed economy argue that this system maximizes economic stability and security because it minimizes dependence on other countries.Additionally, they claim that it allows for more government control over the allocation of resources within the country. Critics of a closed economy argue that it stunts economic growth by limiting opportunities for trade and investment. They also maintain that it can lead to inefficiency and stagnation as businesses are unable to take advantage of new technologies or innovations from abroad. In conclusion, while there are pros and cons to both open and closed economies, I believe that a open economy offers more opportunities for growth and innovation, making it preferable to a closed economy.
