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Homework answers / question archive / Hi, need to submit a 1000 words paper on the topic Definition and Explanation of Closed and Open Economic Systems

Hi, need to submit a 1000 words paper on the topic Definition and Explanation of Closed and Open Economic Systems

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Hi, need to submit a 1000 words paper on the topic Definition and Explanation of Closed and Open Economic Systems. ic system are trading of goods and services at international levels and engaging in import and export of goods and services between various countries. Therefore there is no doubt that this leads to inner and outer flows. It may be goods and services in the form of import and export or the flow of resources, such as labor, capital and currency. The flow of labor is in two ways: emigration and immigration. Emigration means the outer flow of people to different countries, whereas immigration is the inner flow of laborers into the country. Capital flow refers to foreign trade investment. Defines and explains leakages in an open system. In the open system, a there is financial model that computes the goods and services exchanged nationally. The leaks in the open system include all transactions of foreign countries.&nbsp.“In an open system, taxes are included in the model to show government purchases and inject money back in to the economy” (The Mechanics of Open and Closed System, 2012, para. 4).&nbsp.&nbsp.Funds being lost due to purchases of foreign facilities can also be seen in the open system. Another structure of leakage that can happen is when US industries outsource their capital OR labor to foreign countries. Even though the industry is saving and can currently make extra profits, the cash that is leaked may not be regained later. Define and explain injections in an open system. An injection happens when a foreign or individual company purchases American commodities or facilities. If a foreign industry hires workers belonging to the US, the wages deserved by the employees are measured and injected back into the financial system.

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