Business and Environmental Protection

A closed system is isolated and has no interaction with the external environment. Closed systems with outputs are knowable only through their outputs that are not dependent on the system being closed or open system. It does not interact with anything outside of it (The Mechanics of Open and Closed Systems, 2012). However, closed systems without any output are knowable only from within. In a closed system all output is sold domestically, and expenditure is split into three components. Closed systems can hamper growth since the flow of information stays within the system and has no chance to interact with to build on knowledge form the outer environment.

North Korea’s economy could be seen as a closed system due to the fact that all economic factors are included. North Korea is isolated and disengaged from the world’s economy. Some can view this as a strength but North Korea’s economic freedom score is 1.5, which makes the economy the least free. North Korea remains still today an unreformed and closed dictatorial state. The Worker’s Party tightly controls every aspect of economic activity. The population depends heavily on government subsidies in various areas such as housing and food rations.

An open system is a group of relations forming a whole. The open system takes inputs from the outside and leaks from the inside. In an open economy, output is sold domestically and abroad (The Mechanics of Open and Closed Systems, 2012). The United States has an open system. Individuals can move from different social statuses based on their achievement. North Korea could benefit from an open system but it would mean that other foreign currencies would be entering North Korea and Korean currency going out to other areas. However, doing this would increase Korea’s growth national product GNP. This is what makes the United States and other countries thrive and prosper.

The outer flow of the closed system consists of currency, which is generated by...