Singapore as an Open Economy
An open economy is an economy in which people, including businesses, can trade in goods and services with other people and businesses in the international community at large. This contrasts with a closed economy in which international trade cannot take place.
The act of selling goods or services to a foreign country is called exporting. The act of buying goods or services from a foreign country is called importing. Together exporting and importing are collectively called international trade.
There are a number of advantages for citizens of a country with an open economy. One primary advantage is that the citizen consumers have a much larger variety of goods and services from which to choose from. As well consumers have an opportunity to invest their savings outside of the country.
In an open economy, a country's spending in any given year need not to equal its output of goods and services. A country can spend more money than it produces by borrowing from abroad, or it can spend less than it produces and lend the difference to foreigners.
Singapore as an Open Economy
Quick Facts * Population: * 5.3 million * GDP (PPP): * $314.9 billion * 4.9% growth * 5.7% 5-year compound annual growth * $59,711 per capita * Unemployment: * 2.0% * Inflation (CPI): * 5.2% * FDI Inflow: * $64.0 billion
Quick Facts * Population: * 5.3 million * GDP (PPP): * $314.9 billion * 4.9% growth * 5.7% 5-year compound annual growth * $59,711 per capita * Unemployment: * 2.0% * Inflation (CPI): * 5.2% * FDI Inflow: * $64.0 billion
Singapore’s economic freedom score is 88, making its economy the 2nd freest in the 2013 Index. Its score is 0.5 point higher than last year, with an advancement in financial freedom outweighing small deteriorations in five other economic freedoms. Singapore is ranked 2nd out of 41
The act of selling goods or services to a foreign country is called exporting. The act of buying goods or services from a foreign country is called importing. Together exporting and importing are collectively called international trade.
There are a number of advantages for citizens of a country with an open economy. One primary advantage is that the citizen consumers have a much larger variety of goods and services from which to choose from. As well consumers have an opportunity to invest their savings outside of the country.
In an open economy, a country's spending in any given year need not to equal its output of goods and services. A country can spend more money than it produces by borrowing from abroad, or it can spend less than it produces and lend the difference to foreigners.
Singapore as an Open Economy
Quick Facts * Population: * 5.3 million * GDP (PPP): * $314.9 billion * 4.9% growth * 5.7% 5-year compound annual growth * $59,711 per capita * Unemployment: * 2.0% * Inflation (CPI): * 5.2% * FDI Inflow: * $64.0 billion
Quick Facts * Population: * 5.3 million * GDP (PPP): * $314.9 billion * 4.9% growth * 5.7% 5-year compound annual growth * $59,711 per capita * Unemployment: * 2.0% * Inflation (CPI): * 5.2% * FDI Inflow: * $64.0 billion
Singapore’s economic freedom score is 88, making its economy the 2nd freest in the 2013 Index. Its score is 0.5 point higher than last year, with an advancement in financial freedom outweighing small deteriorations in five other economic freedoms. Singapore is ranked 2nd out of 41