Which of the following is not a way by which an economy is linked with the rest of the world?

International Organisations like IBRD

The correct answer is Option 3: International Organisations like IBRD

An open economy is one which interacts with other countries through various channels. In reality, most modern economies are open. There are three ways in which these linkages are established.

1. Output Market: An economy can trade in goods and services with other countries. This widens choice in the sense that consumers and producers can choose between domestic and foreign goods.

2. Financial Market: Most often an economy can buy financial assets from other countries. This gives investors the opportunity to choose between domestic and foreign assets.

3. Labour Market: Firms can choose where to locate production and workers to choose where to work. There are various immigration laws which restrict the movement of labour between countries.