Difference Between Open up and Closed Economy

Task 1

  • Explain the differences in the operation of close and open economies by citing any relevant example to aid your answer.

Introduction

Malaysia is a place of trading for business within the business enterprise is large or small. Every buying or trading also acquired sees the economic in Malaysia or country when they start their business. Once the economics of each country is lower they didn't have any buyer or company can do business and invests in there. Example is North Korea. Open up economic is mean can import and export with other country. That mean the country is a destination to doing trading or business. The advantages for open economic for each and every of country is can do trading and gets a good product using trading and the drawback is high cost. The benefit for closed monetary is won't need to spend hardly any money in trading looked after can increase the sale of their country product. Disadvantage for closed monetary is is now able to get a satisfaction with other product because no choice and change the use any product are import because as a closed down economy world they cannot doing trading with other country.

Main body

Close economic

Closed financial is a self sufficiency world without get any commendation from customer because they did acquired any trading with other country. They citizen also only can accepted and satisfied own country product because they only satisfied the merchandise are process in own country is quality compare with other country.

Isolation

I choose North Korea as my shut economic because the country is handled by army so the product also cannot go out the country using trading. In addition they cannot get a trading partner with other country like product and daily need because the entire thing is military put together to citizen.

Trading cost

Why businesses don't possess in North Korea it is because when any trading are began the tax are considered by military is high. The resident can also save move cost because no trading and travelling. The expense of trading also fix by military. So, the free for export and import is high. The military also got a legislations for citizen for their country for who are transport part of own country. The items are want to transport out of the country also limited because they don't really want their country brand are employing by other country citizen. The cost also will gain less cost equate to open economical because close monetary transit cost is high than wide open economy. So when other country sales the truth is import from close market world also cannot earn much more profit when doing business.

Government decree

Government will close the border through tax. Is basically because tax. Army gives high taxes to who's import and export product in their country. They also fix the ruse and legislation for who are starting business trust import and export in their country. The armed service for closed current economic climate equate to other country is military services. For closed economical army got capacity to control their country equate to open monetary because open current economic climate is controlled by government. In addition they will need action to who's violation. Culture desire for closed financial citizen is can only just trade with member in their country.

The product are produce by closed down economy country is merely satisfied resident in their country compare with open financial product because available economical product is talk about to all resident in various country and will satisfied by different culture person. Their product is produces is merely enough their citizen to consume and use. The main thing because of their country is only going to import solar energy to keep carefully the wheel production working. They only do trading with other country in their country because can save more cost. In addition they don't service they product will decrease in demand of economical but open monetary is maintain the demand of customer need and want to large their business.

Foreign exchange

The advantages for exchange in closed economic is different between open monetary because close financial can maintain their overseas and open economic cannot maintain their country foreign exchange because the business of these country will increasing and lower. Other advantages is in addition they won't need to care about the international of other country is high because did get any exchange with other country.

Foreign worker

Different between shut down and open financial is overseas for own country will increase and decrease and earn to other country citizen. Example like Malaysia employee like go to Singapore work and take the salary change back again to Malaysia money. The international of Malaysia increase. Good for closed economic is no resources out to other overseas country because all international worker aren't allow to entry their country.

Benefit for finished economy

The citizen in their country can find job easily equate to open overall economy. The material also can use within own country because the quality of the product also will be maintain. All of the gain in close economy is give their resident first to take pleasure from the life span.

Open economy

The main point for open economic is using trade service with other country like international trade. The resident also will gratify their need and want of the product compare with the several brand of the product compare with shut down financial because they will get the merchandise can satisfied them. The client can also compare the product are they use with other product. The company of the merchandise also find the way to supply the product got a solid brand compare with closed economic. Open up economical also well in investment because can provide own citizen have an alteration to invest in other country. The citizen also will get more benefit went the invest for other country international is increase. Our country also got import rice in Thailand and export palm petrol to other country.

Economy difficulties

Open economic also will take action of the effect to the global compare with close economic is similar to financial problem. They are able to ingest more product true transfer in a yr. Customer also can have more choice because can tastes different kind of food and use different kind of product equate to close economic. The resident doing export and transfer is merely can rely international as well as local because once for account.

Gain from trade

At the trading way we will earn a great deal of revenue when trade with other region. The price for trading also low because low tax are taken by government. When doing trading customer in a position to pay higher demand price than marker price because they order true from provider so the price are receiving is less. When order true company we will receive lower price match up against market price because true get the merchandise with company.

Transit cost

The transit cost from other country is good with other country because all the price is advertising to other country is good. The merchandise is more chipper than home because the way for trading is using transportation. The cost for import and export is low than closed economy.

The closed down alternative

Closed economy is not same with open economy because closed down economy is not engage with international trade.

Labor

As an wide open economical world they allow they citizen to migration to other country because the advantages is give their resident changes to go outdoors country. Apart from this also will raise the rate of labor in migration to other country because a few of the country can get payment high and the opportunity of job also more.

Capital

The investment of the country will increase when the united states is famous because the rate for invest increase. Financial capital for invest will increase because people make investments more in their country. Lastly is physical capital increase because more people, more factories and more products can product per day.

Trading currency

The money of the country will increase when export with other country. Trading currency rate will increase because buyer will buy the currency in our country so the trade of money rate increase.

Protecting the homeland

The other citizen worker come from other country will trade our country money go to switch their country money so our money in country increase. The factory also will make balance good because want to attract more customer invest their manufacturing plant. The living point out of the country also will raises because place already move forward. Apart from this they also promote consumer satisfaction because can give customer more choice and acquired a good living place.

Conclusion

The different between sealed and open monetary is open economical is have a good service with other country and shut economic is only have a trade in own country. Open up economic is can give company to choose the product are they want and need and closed economy is use own country product. Closed down monetary also no satisfaction with other country product. So, I think open economy is better than closed current economic climate because without open up economic we cannot try other country product in Malaysia.

Task 2

Discuss how a country could utilize its economical policies an equal wealth circulation among its populace

Introduction

At 1985, Malaysia is became education world because administration purpose more high certification to their citizen at education. In addition they prepare the place to give citizen get a good spot to research. Cost of research primary until supplementary also free. Malaysia is a technology world just what exactly is utilizes in virtually any country. Normally Malaysia can be an equal wealth circulation world compare with other country. How government is doing to give Malaysia has a wealth distribution world. Firstly government Malaysia intend to give scholar RM250 reserve Boucher to help student in review. Second is give RM650 to who family are lower income. Government also make RM100 room for who are income low can acquired a residence to still. More residents in Malaysia the richest and poor citizen will in the country. Equate to other country like Thailand Malaysia is the most better because nowadays overall economy in Thailand or India is cut down and also got some citizen are pass away because no food to eat. So, equal wealth distribution is very important in every country.

Main body

Comparison education in Malaysia and other country

Government aim every citizen acquired a higher education because they need citizen received a same wealth distribution. Government will make free for demand for key and secondary university because they need all citizens to own knowledge. Next, school also will make free food for individuals who are low income can get food to consume compare with the institution in Singapore because within they need to pay their free by them self because the price of living style in Singapore is high compare with Malaysia. Authorities also prepares PTTN loan for who is lower income can get fee to study until high education. Malaysia also provide 1 Malaysia voucher to provide the scholar in secondary college and university have an opportunity to buy book and fixed in booklet store because this can help them to save up their cost in review and also provide them 1 Malaysia greeting card for college scholar to encourage them to study in college and increase their education standard. Malaysia government provide multi qualification for school in Malaysia to appeal to more folks go to Malaysia for review and the citizen in Malaysia also can benefit from the privilege that they do not need to go outstation to review also can get other country qualification looked after provide dual diploma for scholar who examine in Malaysia. Governments also value their health and provide them athletic university and help them built their talents in athletics and help them built their body to be healthy.

How federal government can help lower income family

Government can offer the reduced income citizen of Malaysia with the program of BR1M. Governments add BR1M to help the poor people and senior citizen in Malaysia. BR1M is a ONE-OFF repayment of RM 650 for home with the income significantly less than RM 3, 000. These financial claims are unveiled by Malaysia authorities to lower down the responsibility for the reduced - income family in facing the rising cost of living style. BR1M provide to the senior who are 65 years and above because they do not have the power to work and they need money to buy their daily household and food. BR1M also help the indegent to defeat their living style by providing them RM 650 every year to help them to reduce their burden. Government do the BR1M program is fair with the other person who are low income because this can help them to lower down their burden towards the household for every season.

How to conquer the poor

Government should provide more working opportunity for the people who are jobless and lower income to reduce the indegent in Malaysia. Federal government should provide authorities fees to both poor and abundant to make it balance and good to both because if the poor need to pay federal than the wealthy will also have to pay government tax to make it good for both. Authorities also can put together more job for the indegent to help them beat their poorest and help them reduce their burden for the daily consumption such as home because home is important for all people and also help them to lessen their burden for household.

Table for the Poor and Rich in Malaysia

The Prosperity and Distribution

The riches and syndication is to give both Low-quality and Rich to be good because if not the economical in Malaysia will unbalance and can affect the poor to be poorest and the wealthy will be the richest. But if government apply government duty and service tax to both category this will help the poor and the rich to be balance in the economic.

Conclusion

As the conclusion, to balance both monetary for the indegent and rich the federal government must be fair to apply taxes for both category and apply BR1M for the poor to help them get over their problem and help them lower their burden. For my advice, I agree what are government process the actions to provide all the citizen acquired a wealth circulation compare with other country Malaysia is way better.

Bibliography

  1. Etu. org. za, (2014). Understanding Basic Economics. [online] Available at: http://www. etu. org. za/toolbox/docs/development/economics. html [Seen 17 Jun. 2014].
  2. Investopedia, (2010). Shut Economy Description | Investopedia. [online] Offered by: http://www. investopedia. com/terms/c/closed-economy. asp [Accessed 17 Jun. 2014].
  3. Investorwords. com, (2014). What's Economic Policy? classification and so this means. [online] Offered by: http://www. investorwords. com/6501/economic_policy. html [Accessed 17 Jun. 2014].
  4. Ong, C. and profile, V. (2013). What Is BR1M (Bantuan Rakyat 1Malaysia) | Classification. [online] Br1m. info. Available at: http://www. br1m. info/2013/06/what-is-BR1M-peoples-cash-aid. html [Reached 17 Jun. 2014].
  5. Suri, S. (2014). What exactly are the dissimilarities between Closed economy and open current economic climate ?. [online] Preservearticles. com. Offered by: http://www. preservearticles. com/201103144509/closed-economy-and-open-economy. html [Seen 17 Jun. 2014].
  6. W Timberlake, B. (1987). For the distinction between wide open and finished economies. Journal of the Experimental Evaluation of Tendencies, [online] 48(1), p. 35. Available at: http://www. ncbi. nlm. nih. gov/pmc/articles/PMC1338743/ [Seen 17 Jun. 2014].

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