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An open system can be influenced by events outside of the declared boundaries of the system. A closed system is self-contained: outside events are separated from the system. The total energy of the system stays the same; there is no input or output of energy, just transferrence within.
In practice many things are a mixture of the two. For example, a government is a closed system when it seeks to maintain confidentiality. However, it is open when it seeks advice and accepts universal voter input and petitions.
Dynamic systems have components and/or flows that change over time.
Compare to Isolated physical system.
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