What is Open System and Closed System in Computer terminology ?

An open system is a system which allows application portability, system interoperability, and user portability between many different computer vendor hardware platforms.  
A closed system is vice-versa to the above.

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In computing, an open system (computing) is a computer operating system that provides interoperability, portability or both, particularly Unix systems

Open system is just a system by which you can interact with the user with the help of any other system, but if you dont have any other system to interact with the user then this is called the closed system.