Question

What is one example of a closed economy

Answer 1

The closed economy is a self sufficient economy. The countries following a closed economy system does not involve in the import and export of goods from other nations.  In these countries, all the goods are produced in the country is consumed within the country itself.

Brazil is a country, which can be said as closed economy as Brazil imports a very item from other nations. A Complete close economy system is not present in any country yet.

Answer 2

In real world, the fully closed economies do not exist but the most closed economy is Brazil.

Further Explanation:

Types of economies:

There are two types of economy namely open economy and closed economy. Open Economy has trade relation with other countries but closed economy is that economy that does not have any trade with other countries.

The characteristics of closed economy are:

• It does not exports services and goods to the foreign countries or imports services and goods from the foreign countries.

• It does not buy debentures, shares, and bonds from foreign countries or sells debentures, shares, and bonds to foreign countries.

• It does not borrow from the foreign countries or lends to the foreign countries.

• It does not receive gifts from foreign country citizens  or sends gifts to foreign country citizens

• The residents of the closed economy cannot work in other countries.

Therefore, in real world, the fully closed economies do not exist but the most closed economy is Brazil.

Learn more:

1.      Learn more about the demand and supply

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2.      Learn more about the size of the economic pie

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3.      Learn more about the economy of Iceland

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Answer details:

Grade: High School

Subject: Economics

Chapter: Types of economy

Keywords: What is one example of, a closed economy, Types of economy, Brazil, foreign country, open economy.