Domestic Economy
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Foreign Trade Compass

Foreign Trade Compass
Foreign Trade Compass

Foreign trade in Iran’s economy requires a strategy to free itself of the cycle of mundane decisions. 
Economics teaches us the principle this strategy should be based on, which is promotion of competitiveness with the aim of increasing efficiency. Lifting bans and replacing them with tariff is the tool decision-makers have at their disposal to achieve this goal. 
Hossein Abbasi, a lecturer in the University of Maryland’s Department of Economics, prefaced his article for the Persian daily Donya-e-Eqtesad with this note. A translation of the text follows:
Economics prefers free trade over restricted trade because it creates competition. If trade restrictions are to be imposed for whatever reason — political or economic — then tariff restrictions should be employed and not bans or quotas. Economic theories and the experiences of other countries show that the economy will become competitive, if appropriate tariffs are set and reduced gradually. 

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