I guess the answer is pretty simple, "closed circuit" as you call it is just like your car, but instead of a radiator, it has a heat exchanger, that is a kind of radiator running in sea (cool) water, the advantages are no rust, a pretty good advantage I would reckon, the disadvantage is cost, a raw water cooling system is cheap and simple, but not so good for your engine, especially what amounts to a car engine running in salt water, and salt water in a car motor is not condusive to long life.