Definition of Open economy:
Market-economy mostly free from trade barriers and where exports and imports form a large percentage of the GDP. No economy is totally open or closed in terms of trade restrictions, and all governments have varying degrees of control over movements of capital and labor. Degree of openness of an economy determines a governments freedom to pursue economic policies of its choice, and the susceptibility of the country to international economic cycles. In terms of the percentage of the GDP dependent on foreign trade, the UK is a more open economy than the US.
Meaning of Open economy & Open economy Definition