Autarky theory

Autarky theory refers to an economic system where a country or region is self-sufficient and does not engage in international trade. In this model, the focus is on producing all goods and services domestically to meet the needs of the population. The idea aims to reduce dependency on foreign markets and avoid external economic fluctuations. While autarky can offer some stability, it often leads to inefficiencies and limits access to diverse products and innovations that come from global trade. Overall, it presents a trade-off between independence and the benefits of a connected global economy.