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Iran in the International Economy

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  1. Introduction
    1. Definitions
    2. What is Subway concept?
    3. Why is it called Subway?
    4. Why the name was not translated to French
    5. Slogan
  2. Subway's adaptation to French culture and gastronomy
  3. Conclusion

Iran was a stop along the Silk Road and its ports on the coat of the Indian Ocean served as seaports. Until recently, during the 19th and 20th centuries, Iran was the object of desire, particularly by Great Britain and Russia. But the 1979 Revolution and the establishment of the Islamic Republic of Iran diplomatically isolated it, at least initially. Is Iran isolated or integrated into the international economic system? While the United States imposed embargoes and a number of laws restricting trade with Iran, West Asian countries did not follow these steps. Who are the trading partners of Iran? What is the nature and intensity of its trade? What are the peculiarities of the Iranian economy, and the weaknesses in its management because of the influence of the political power? That is what we intend to see, by studying first the structure and evolution of the Iranian trade balance, and then from the weaknesses of its economy, based primarily on the export of hydrocarbons, policies to reduce imports, and legislations on foreign direct investments. Finally, we will see the gradual but tentative step toward economic liberalization, the reforms attempted and regional economic organizations of which Iran is a member and in which it plays a major role.

Sales of crude oil are on average more than 80% of export earnings, but 85% of foreign exchanges need import. The foreign trade of Iran is mainly directed by sales of oil.

The main items that are imported by Iran are:
- Machinery and industrial equipment, representing 43% of total imports, or $7 billion, mainly from European countries led by Germany.
- Food products represent 15% of total imports, and consist mainly of cereals, especially wheat (6.8 million tonnes in 2001/2002), the main suppliers are in the order: Australia, Canada, Argentina and France and frozen beef from Brazil, France and India, and sugar, a constant need of Iran, from Brazil, the Emirates and South Africa, a total worth of $ 215 million in 2001/2002.
- Metals and minerals, which account for 18% of total imports, consisting mainly of metals in products based on iron and rolled steel and other kinds of iron and steel from Germany, Italy, countries of Central Asia and Russia, for a total of $1.5 billion; the ores are imported from countries such as Jordan and Morocco, which exported nearly $10 million worth of phosphate to Iran in 2001/2002.
- The basic chemicals and rubber imports, which represent 15% of total imports, consist mainly of organic chemicals imported from China and Eastern Europe (382 million), raw materials for drugs and pharmaceutical products primarily from European countries (297 million), and fertilizer imported mainly from Tunisia, Morocco and Jordan ($182 million).

In 2001/2002, imports were 49.3% from the European continent, and Germany was the leading provider of Iran with more than 10% market shares. The five country suppliers of Iran are the United Arab Emirates (9%), France (6.2%), Italy (5.6%), South Korea (5.4%) and Russia (5%).

Tags: 1979 Revolution, economic liberalization, foreign direct investments

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