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closed economy (barter)
Economical 02/13/2024
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Walid Khaled Al-Zaidi:
Establishing promising development plans includes developing all outlets of the economy, its stages, forms and forms, which forces us to return to the partial objective difference between the closed economy and the open economy. This is because the outcomes of any economic action followed by the governments of the countries of the world clarify that difference between the two types mentioned, as they are in a package. There are differences from each other in terms of countries’ attitudes regarding trade, their interaction with other countries, and their benefits or harms. The closed economy is one of the systems of activities that depend on self-sufficiency without going any further than that, even one step. In most of its forms, it does not encourage the multiplicity of trade relations with countries of the outside world, and its models do not include diversification of sources of foreign imports, nor does it rely on finding acceptable formulas. Between what is supposed to be imported and what must be provided locally through additional activities such as manufacturing, separating derivatives, and providing raw materials to add new industries to what already exists, in addition to specialization in work and thus reducing or avoiding the total import of all the country’s needs, although there are some advantages of this type of economy if it is Its application can stimulate the development of simple local industries and provide job opportunities, in addition to what can limit illicit trade such as fraud and smuggling. However, the truth of the matter confirms the difficulty of following a complete closed economy approach, as this may cause serious consequences in the long term because it establishes economic activities that depend on... The principle of barter (the item and its proceeds) and vice versa (the purchaser and its cost).
While the open economy is a type of development activities that are based on the principle of openness to countries of the world to exchange commercial operations between them and their neighbors, practice import and export activities, benefit from modern technology, and provide opportunities for companies to expand by investing abroad, thus benefiting all economic activities, including the advancement of national industry and investment in... Available as raw materials for major national industries. It seems that we have begun to find its clear shape in what is happening in the field of the oil sector after the Ministry of Oil announced the operation of gas investment capsids in the middle of this year and to reduce the waste of uninvested national energies, of which associated or latent gas is one of its main pillars after completing discussions with the relevant authorities. The relationship is to prepare for increasing and investing in gas and reducing its burning in the air. Indeed, the national oil sector is working to operate capsulators for two different sites during the first half of the current year to supply the electrical stations with the largest amount of gas, and by seeking to sign contracts to invest gas in all fields and reaching an advanced stage for important steps to increase production and diversify sources to improve it. Among the most important projects is The contract concluded with the French company Total to invest (600) million standard cubic feet per day from five fields in southern Iraq, in addition to the great progress and rapid steps in investing in the Halfaya gas field, which is planned to provide (300) million standard cubic feet per day. This is one of the forms or steps Leaving the closed economy.
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