What is included in the definition of a closed economy?

A closed economy is defined as an economic system that does not engage in international trade, meaning it does not import or export goods and services to or from other countries. This concept implies that all economic activities, including production and consumption, occur within the country's borders, relying solely on domestic resources and markets.

In a closed economy, the focus is on self-sufficiency, where the economy is structured to meet its own needs without external trade. The nature of this system heavily limits the influence of international factors on the domestic economy, allowing for different policies and economic strategies that might not align with global market trends.

The options that mention international commerce or trade with neighboring countries do not fit this definition, as they imply some level of interaction with the global market, which contradicts the characteristics of a closed economy. Additionally, the option that speaks only to imports does not comprehensively define the closed economy, since such an economy would not engage in either imports or exports at all.