Question

States use different types of trade strategies to try to improve economic outcomes, some are more "classic liberal," believing that freer trade will eventually benefit all economies, while others pursue more protectionist policies to try to guide the market and help local producers and populations. Recreate the bar chart of "Barriers to Trade" above and list the countries from more open (scoring highest) to more protected (scoring lowest).

Answer 1

Answer:

The correct answer is:

1 - Singapore

2 - Chile

3 - Ireland

4 - USA

5 - China

Explanation:

An open economy is one that carries out commercial interaction with the outside world. In other words, it buys and sells goods, services or financial assets with the rest of the world economies.

With the consolidation of international trade in recent decades and the phenomenon of globalization, this concept has reached its maximum expression, with economies more exposed to import and export as the basis of its economic model and with greater weight in its GDP. In this sense, it could be said that a closed economy is something currently utopian, since no country currently strictly complies with its theoretical requirements.

The most common procedure to open an economy is the assumption of trade agreements between countries, which regulate and control the entry and exit of goods and services, creating trade routes that can be expanded later in terms of economic integration.