StudentShare solutions
Triangle menu

Open economy - Term Paper Example

Nobody downloaded yet
The primary advantage for consumers living in a country with an open economy is obvious in that they have a much larger variety of goods to choose from. The caveat here must be “if they can afford to buy them.” Additionally, these consumers may also invest financially outside of the country. Regarding country as a political entity, it is not required to equal its output of goods and services and can, if it wishes, spend more money than it itself produces within its economy by borrowing from abroad, or it can spend less than it produces and lend the difference to other countries.
A primary example of this previous statement is the United States as the former country mentioned, and China as the latter, a situation widely discussed and criticized by many as detrimental to the future economic and political stability of our nation as well as its security. quotes President Obama. “The long-term deficit and debt that we have accumulated (with China) is unsustainable. We cant keep on just borrowing from China... We have to pay interest on that debt and that means that were mortgaging our childrens future with more and more debt" (para. 2-3). At over $700 billion in U.S. government securities, and despite its own mixed participation in the open economy which discourages foreign investment, China is the single largest holder of U.S. debt. With a budget deficit of over 1.8 trillion, the US continues to import Chinese goods and allow it access to investment and debt purchase at a disproportionately alarming rate. With the world economy shrinking, concerns are many that China will either stop buying our debt or call in markers we are unable to pay.
Much of what is touted about the benefits of open economy to poorer nations is largely theoretical. Chidambaran in India in Transition presents a positive view of the ...Show more


An open economy is one that interacts freely with other economies around the world, a theoretically simple explanation that belies its actual complexities. Macroeconomics, the theoretical basis of the open market, involves the selling of goods and services produced in one…
Author : browndomenica
Open economy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the term paper on your topic
"Open economy"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Given out in extreme cases and circumstances in the modern day and age, death penalty has clearly divided the American society into two halves with the first half in favor of and the second against it. Both sides present arguments to support their respective cause.
5 pages (1250 words) Term Paper
Macroeconomics Inflation and Unemployment Exchange Rate and Open Economy
This is in terms of the quality of life led by the citizens. Some critics however have found that the use of national income data is not 100 percent reliable indicator of standard of life (Miller, 2011). The business cycles in an economy would influence standard of living.
3 pages (750 words) Term Paper
The Federal Reserve Controls the American Economy
The Federal Reserve is the fundamental bank of America initiated in 1913 through the ratification of Federal Reserve Act as a reaction to the financial apprehensions of 1907 (Greider 67). However, the functions of the Federal Reserve have widened over time as the bank develops to meet the tests of organization in the economy.
7 pages (1750 words) Term Paper
Anything related to today's economy
Economic growth was pegged on private sector's response to consumer demands. A country's economy is influenced by different factors ranging from policies to current financial conditions in the market (Bureau of International Information Program para 3). The government affects the economy through its policies it, that either attracts or discourage investors at both local and international fronts.
5 pages (1250 words) Term Paper
The portfolio management theory is a theory in finance which has strived to maximize the portfolio’s expected return while being exposed to certain risk. The portfolio management theories are widely used in the financial market these days and the investors try to manage their portfolios in the light of the principles suggested by these theories.
15 pages (3750 words) Term Paper
Open Market Operations- How and Why They Are Conducted
The major importance of using OMO is so as to help the government achieve the major objectives of monetary policies which includes; maintaining price stability, achieving a balanced economic growth and help a country achieve a full employment. The major activities involved in open market operation include the buying and selling of government securities which include the treasury bonds, bills and notes.
6 pages (1500 words) Term Paper
Monetary policies and how they affect various sectors of the economy
The monetary policy mainly revolves around the control of the liquidity preference and the money supply in the economy. The main objective behind the implementation of a monetary policy is the maintenance of the value of the local currency of the economy by taming the inflation.
5 pages (1250 words) Term Paper
cases and circumstances in the modern day and age, death penalty has clearly divided the American society into two halves with the first half in favor of and the second against it. Both sides present arguments to support their respective cause. Capital punishment has been
5 pages (1250 words) Term Paper
China and the World: Economy and Security
According to the report Chinese governance over the global economy is reflected by its fast expansion in trade activities with regard to the global trade functions. Further, the incorporation of China in the World Trade Organization has further helped the region to increase its trading activities through changes made in the regulatory mechanisms.
8 pages (2000 words) Term Paper
Economy of any country in the world
The open economic policy approach, however, ceased to retain its economic success. The essay presents a succinct exploration of problems causing the recession in Germany’s economy, loss of monetary policy independence, a minimal rate of productivity growth and higher
2 pages (500 words) Term Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Term Paper on topic Open economy for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us