Open Economies Overview

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What term is used to describe a country's economic relationship with outside countries?

Open economy

Why do most western governments create barriers, according to the text?

To protect citizens against illegal drugs

What organization is responsible for promoting the growth of free trade between economies?

World Trade Organization (WTO)

When one country believes another is taking unfair advantage of trade policies, what action might be employed?

Economic sanctions

What is the term used to describe a country preventing other countries from trading freely in order to protect its domestic market?

Protectionism

Apart from global agreements under WTO rules, what other types of agreements exist, according to the text?

Regional and bilateral trade agreements

What does the World Trade Organization (WTO) sometimes do when disputes arise between countries?

Act as a mediator

Explore the concept of open economies and their economic relationships with other countries. Learn about trade barriers, foreign exchange controls, and policies that encourage free trade. Understand the challenges and disputes that can arise in international trade.

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