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Nope, it is a game balance issue which puts it into the "suggestion" forum, which usually means it might get looked at "sometime in the future" unless enough people bitch and scream.

I'm planning to poke a Dev about this but any of you guys can make a summary post of the proposed suggestions? Or the bottom line is just let countries with closed economy be able to trade some percentage with faction members?
 
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But I would like to see the following change to the mechanics:

The amount of resources your country holds back thanks to trade laws (i.e. I run export focus, so 50% goes to market, and 50% is held back) is used by your industry first.

Then, it may be sold only to faction members if there is any left over.

The incentive to keep your economy open is that the more open your trade law, the more production bonus you get, like now.

If Speer wants to sell leftover steel to the Italians, that's fine.

I'm planning to poke a Dev about this but any of you guys can make a summary post of the proposed suggestions? Or the bottom line is just let countries with closed economy be able to trade some percentage with faction members?

The above post is probably the best idea for improvement in ai performance. The only caveat might be changing "faction members" to "countries with same ideology" to make sure that Japanese rubber and oil is available to Axis members in cases where ai Japan is not in the Axis.

The other suggestion I would make is that non-aligned countries not at war always stay at Free Trade or at worst Export Focus. The reasoning being the countries in question would benefit far more from the free CIC that comes from exporting resources and the research and production bonuses compared to locking up resources they likely can not use.
 
I'm planning to poke a Dev about this but any of you guys can make a summary post of the proposed suggestions? Or the bottom line is just let countries with closed economy be able to trade some percentage with faction members?

Please mention that they need to take another look at the AI when Germany decides that its a brilliant idea to go closed economy after controlling most of the steel in Europe. Other countries are forced to do the same going closed economy because they aren't having enough steel after Germany closes its economy.
 
I brought the topic to Dev attention..

..and to solicit a quick reply I took the liberty to take in hostage Dan's car on this thread posters behalf :D:

Tank.jpg
 
The easiest way to fix it AND make it more historical, would be to split it up by commodity. You can be 'free' trading in ex. Steel if your economy produces a lot of it, and closed in ex. rubber if you are in a shortage of that. The global bonuses for your trade position would be based on your average position. The worst example for this is Japan, which due to the mix of resources in the places it conquers should ideally be closed for aluminum, oil and steel, and open for rubber, tungsten and chromium. Because the game doesn't let you do this, and you are trying to optimize your economy you wind up in a no win situation where you trade away stuff you need to get the trade bonuses, while re-importing the same stuff, OR you close your economy and none of your axis allies can get any rubber, tungsten and chromium from you even though IRL Japan would have been exceedingly happy to sell this stuff to them.