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The design of such models as well as economic policies has to take into account the susceptibility to international trade and growth cycles. It has generally been assumed that openness is closely related to the size of the national economy. This casts serious doubts on this hypothesis. It claims that most economies, whether small or large, must incorporate the influence of international trade and factor relations in their models of planning and forecasting. The paper has been presented at the IIASA Task Force Meeting on &quot;Problems in Long-Term Macroeconomic Planning and Forecasting in Small, Open Economies,&quot; 19-21 September, 1979.</abstract>
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