The Impact of Open vs Closed Economies on Innovation and Consumer Access

Abstract

Open or Closed Economy Globalization has made it easier for economies and consumers to access goods and services from international markets. The debate on open and closed economies focuses on the level of interaction between the economy and external markets. Open markets advocate for increased market access that increase the importation and export of goods to other economies. The goal of such an economic approach is to promote the transfer of goods, technologies, and innovation across nations to facilitate growth (Kobrin, 2020). On the other hand, a closed economy limits international trade by placing restrictions through legal and structural structures. The closed economy focuses on developing self-sufficient systems that produce all and only what the consumers need to thrive. I support an open economy since it promotes market access and increases innovation among the local sectors competing at an international platform despite failing to maximize the protection for domestic industries and prompting price instability,. An open economy offers advantages to the consumers since it increases access to the international markets for the goods and services that are not available in the local markets. Globalization has offered unlimited transport and communication solutions that allow access to goods from all over the world. An open economy offers access to products and services that a single economy is unable to provide for its citizens and benefits the consumers. Advances in the production of goods differ from one part of the world to another and this affects the quality of products in the market (Helm, 2020). For instance, Asian markets may be more effective in producing and selling certain products that are not available for the western consumers. An open economy promotes the availability and variety of goods and services that consumers can access in the market. An advantage of...