Closed economy in the context of "Mutualism (economic theory)"

An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within an economy. It includes the combination of the various institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community.

An economic system is a type of social system. The mode of production is a related concept. All economic systems must confront and solve the four fundamental economic problems:

An open economy is an economy in which both domestic and international entities participate in the trade of goods and services. This type of economy allows for the exchange of products, including technology transfers and managerial expertise. However, certain services, such as a country's railway operations, may not be easily exchanged internationally due to practical limitations.

In contrast, a closed economy restricts international trade and finance with other countries. In an open economy, the sale of goods or services to a foreign country is known as exporting, while the purchase of foreign goods or services is referred to as importing. Collectively, these activities form the basis of international trade.