However, certain services, such as a country's railway operations, may not be easily exchanged internationally due to practical limitations.
Additionally, citizens can invest their savings in foreign markets, potentially offering better returns.
An open economy also allows a country's spending in any given year to differ from its production of goods and services.
[2] The concept of an open economy[3] is closely linked to the idea of globalization, where individuals, businesses, and governments worldwide are increasingly interconnected.
Historical developments such as the Silk Road, which facilitated trade between Eastern Asia, the Middle East, and Europe, and global conflicts like World War I and World War II, which fostered economic alliances, have played a significant role in the development of open economies.