Open Market
Categories: Trading
Ahhh, the fresh air of an open market. Not a fruit 'n' veggies market, and definitely not a fish market, but an economic market.
An open market is a market without barriers: no need to get a license, pay a tariff or taxes, or listen to unions. Open.
Most markets are not 100% open or closed, so in the context of the real world, an “open market” is a relative term, meaning “mostly open markets, compared to everyone else.” In the international sense, an open market is a trade-friendly market, relatively free of quotas, tariffs, and duties.
While open markets are free from state intervention, that doesn’t mean they’re easy to enter. If you’re really into VHS tapes (because who doesn’t miss the 90s?), and you open a VHS shop, you might find it hard to stay in business if there’s another VHS shop already open within 100 miles. Open markets, like most of their closed counterparts, are subject to the restrictive forces of market supply and demand.
See: Open Economy.