As a result, Sudan’s export share stands between 0.02%-0.03% in world trade. In 2020, Sudan showcased the lowest percentage of importing goods and services and was third-smallest in exporting goods and services. However, it has not shut down trading entirely but has shown minimum engagement lately. In recent times, Sudan has been the closest country to abide by the terms of a closed economy. So consumers can collect their needful products and services from the market by spending a certain amount of their money.Īfter carefully considering their expenses, most people then opt to save up a certain amount for future purposes that they can deposit in a bank or any such financial institution. With this help, they can manufacture products and bring services to the market for the mass to utilise.Īfter manufacturing, the products are sent to marketplaces and sold to consumers in exchange for a certain monetary amount. There are four areas within this economy where the activity of trading occurs.Īs seen in the image above, businesses approach financial institutions to receive financial aid for investment purposes. The cycle of production and consumption follows one another. In a closed economy, as there is no scope for international trading, all the products consumed are produced within the country. A disadvantage would be that, as there is a limitation in production, consumers don’t experience much variety in terms of products and services. An advantage is that it protects against the highs and lows of the global market.However, there are a few countries that function in a somewhat similar fashion, like Brazil, Morocco, and Ukraine. In today’s world, no country accurately abides by this concept.One feature is that production and consumption occur within the boundary of the said region.It defines the state of functioning where a country refrains from trading internationally.Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others Key Highlights
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