What does it signify when a country is described as having an open economy?

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Permits individuals to own capital assetsMaintains a flexible currency exchange systemOperates with a fixed currency exchange rateEngages in commerce with foreign nationsRestricts international financial transactions

Explanation

An open economy is characterized by its participation in international trade, meaning it buys and sells goods and services with other countries. This distinguishes it from economies that are closed or isolated from global markets.