TRADE

Open Economy vs. Closed Economy

 Open Economy trade goods with different nations
 Philippines don’t have closed economy

Types of International Trade

1. Export Trade
2. Import Trade
3. Entrepot Trade

Balance of Trade: Exports = Imports

 What if Export > Import?: it is more beneficial to short-run, than
long-run. A positive economy is a short period of time.
 What if Export < Import?: A negative economy, since everywhere
you go, there is something wrong in terms of import.