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Trade sanctions.In order for the UN to urge Iran to accept to halt its nuclear activities, a series of economic sanctions were enforced against Iranian banks and companies especially in terms of the sale of nuclear material and technology,

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Introduction

Article 3- analysis Economic sanction is defined as "coercive economic measures against one or more countries to force a change in their policies". An example of economic sanction is the one that was enforced against Iraq by the UN Security Council before Saddam Husayn, the then Iraqi president, was toppled by the invasion of the USA and its allies. In December 2006, after reports that Iran had decided to resume its uranium enrichment programme despite the opposition of the international community, Iran's nuclear case was referred from the International Atomic Energy Agency (IAEA) to the UN Security Council. In order for the UN to urge Iran to accept to halt its nuclear activities, a series of economic sanctions were enforced against Iranian banks and companies especially in terms of the sale of nuclear material and technology, as well as devices that could in a way help Iran achieve its objectives in terms of nuclear technology. ...read more.

Middle

Because of Iran's familiarity with economic sanctions both at the time of Iran-Iraq war in 1980 to 1988 and later during the unilateral sanctions imposed by the US government, Iran attempted to make the best out of the economic sanctions which were aimed at urging other countries to stop trade and business with Iran. As a result of the international sanctions, countries were less willing to carry out transactions with Iran or sign business deals with this country. Furthermore, many of Iranian banks were banned by the UN Security Council resolutions, therefore the cost of trade with Iran increased. Consequently, the prices of imported goods to Iran went up and some more sensitive items became scarce in Iran. Such developments increased the cost of living in Iran, which were hoped to encourage the Iranian government to reconsider its nuclear policies. ...read more.

Conclusion

As a result, the economic sanction played the role of a double-edged sword. On the one hand, it increased the economic pressure on the people, but on the other helped Iranian producers and industries to flourish. For instance, Iran has now started exporting vehicles to Latin America and some central Asian countries competing with other countries in the same business. Iran is also exporting wheat, while it was one of the biggest importers of this produce in the past. The challenge faced by the Iranian government is now how to better distribute wealth in the country, so that the burden of high prices on ordinary people due to economic sanctions can be alleviated. The laws in Iran encourage exports and therefore no taxes are levied on exported goods. As a result, the government should find ways and means to spread its social safety net using its increased oil revenues to cover those who are the most vulnerable and are affected by the high prices. ...read more.

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