A closed economy (封闭经济 fēng bì jīng jì) refers to a type of economy that has no international trade, that is, there are no imports and exports and produce everything consumer demanded within the country. The economy is completely self-sufficient. Also see: open economy.
Part 1: Breakdown of Words
- “Closed” (封闭 fēng bì) as in a closed system (封闭系统 fēng bì xì tǒng).
- “Economy” (经济 jīng jì) as in “planned economy” (计划经济 jì huà jīng jì), “open economy” (开放经济 kāi fàng jīng jì), or “economy of scale” (规模经济 guī mó jīng jì).