What have a tiff with Iran and
What is the Iran Nuclear Deal?Officially called the “JointComprehensive Plan of Action”, the landmark deal was crystallized betweenworld powers including Russia, EU and US in July 2015. As said by the USSecretary of State of the time John Kerry “the parties have taken ameasurable step away from the prospect of nuclear proliferation, towardstransparency and cooperation”.
A joint statement was designed inSwitzerland in which it was decided that Iran would reduce, convert andredesign their nuclear arms, and comply to an Additional Protocol to lift allnuclear based economic sanctions, thus freeing many billions of dollars in oilrevenue and frozen assets.Bulldozing what Obama built on and callingit ‘the worst deal ever’ as he believes that Iran supports terrorism . It’s nosecret that republicans have a tiff with Iran and many economists believe thatthis is Trump planting a seed in everyone’s mind to vilify Iran and start war.
Iran’s OverviewIran,though blessed with alot of Oil, is still very much an underdeveloped countrydue to its Interanl factors rather than its external factors. There areinternal factors such as:-a)Trade Deficitb) Weak Private sector, Judiciarysystem, Economyc)Inflationd)Povertye)CorruptionEventhough External factors such as low Foreign Direct Investments and Sanctionshamper its growth, Iran bleeds internally due to its Internal factors.Whatit means to be Sanctioned?EconomicSanctions is a political force that is as powerful as military force as it letsa country bleed out in of itself. When Sanctioned, Iran is restricted tomaintain trade relations with any other country. This consists of purchase andsale of products, technology and other factors of production. This situationsucks dry all Export and Import activities in the country.
Not only are EX-IMof trade affected but also its international financial relations. Allinternational investments and financial exchanges are sanctioned, even withInsurance companies and Banks.Reasonsfor Sanctions:a)To influence policies or shakeup the political landscape/ system of a country.b)Promoting human rights, anti-terrorism and regulating weapons of massdestruction.c)Reducing the military power of target country.Economyon Iran’s Oil Iranbenefits from a strategic geographic location, but has weak spots in fields of a)Production and Export of raw materials/ non-oil productsb)Production and Export of Low wholesale of Oil and other energy sources