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What is the Iran Nuclear Deal?

Officially called the “Joint
Comprehensive Plan of Action”, the landmark deal was crystallized between
world powers including Russia, EU and US in July 2015. As said by the US
Secretary of State of the time John Kerry “the parties have taken a
measurable step away from the prospect of nuclear proliferation, towards
transparency and cooperation”.

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A joint statement was designed in
Switzerland in which it was decided that Iran would reduce, convert and
redesign their nuclear arms, and comply to an Additional Protocol to lift all
nuclear based economic sanctions, thus freeing many billions of dollars in oil
revenue and frozen assets.

Bulldozing what Obama built on and calling
it ‘the worst deal ever’ as he believes that Iran supports terrorism . It’s no
secret that republicans have a tiff with Iran and many economists believe that
this is Trump planting a seed in everyone’s mind to vilify Iran and start war.

Iran’s Overview

Iran,
though blessed with alot of Oil, is still very much an underdeveloped country
due to its Interanl factors rather than its external factors. There are
internal factors such as:-

a)
Trade Deficit

b) Weak Private sector, Judiciary
system, Economy

c)
Inflation

d)
Poverty

e)
Corruption

Even
though External factors such as low Foreign Direct Investments and Sanctions
hamper its growth, Iran bleeds internally due to its Internal factors.

What
it means to be Sanctioned?

Economic
Sanctions is a political force that is as powerful as military force as it lets
a country bleed out in of itself. When Sanctioned, Iran is restricted to
maintain trade relations with any other country. This consists of purchase and
sale of products, technology and other factors of production. This situation
sucks dry all Export and Import activities in the country. Not only are EX-IM
of trade affected but also its international financial relations. All
international investments and financial exchanges are sanctioned, even with
Insurance companies and Banks.

Reasons
for Sanctions:

a)
To influence policies or shakeup the political landscape/ system of a country.

b)
Promoting human rights, anti-terrorism and regulating weapons of mass
destruction.

c)
Reducing the military power of target country.

Economy
on Iran’s Oil

Iran
benefits from a strategic geographic location, but has weak spots in fields of

a)
Production and Export of raw materials/ non-oil products

b)
Production and Export of Low wholesale of Oil and other energy sources

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