Monday, November 30, 2015

Eleanor Oakman. Chapter 13, Question 6

What I found most interesting and also agreed with, was when Wheelan brought up the differences between open trade countries and self sufficient countries. It is clear that open economies grow much faster than closed. In the American Economist Review they agree as well .  A growth of 0.7 percent per capita compared to 4.5 annual percent is pretty noticeable. Though what got me thinking was why did these select economies close for trade in the first place? Wheelan brought up that many of these countries with closed economies have other problems as well, but why should that be the reason why they are so isolated? Wouldn't trade with other economies influence their neighboring countries to help out and give financial aid to them when in need? Especially if  they  are a trading scource with eachother? That is what confuses me and want to know more about, I may be wrong because I am an average student in life, but it seems to me that being a closed economy just digs a deeper hole for them to manage.

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