Globalization and the Need to Adopt Appropriate Competitive Policies for Iran

Globalization is a technical process, resulting from a revolution in telecommunication, information technology, and internationalization of production, distribution and consumption. In such a situation competition is inevitable. However, some economists regard globalization as the extension of imperialistic domination, while others consider it as the vanguard of peace, freedom and welfare, leading to development. The author of this paper is of the view that in reality, the question is not whether globalization is good or bad but whether the question is to what extent can a country use the opportunity provided by globalization to enhance the welfare of its population. This writer believes that competition can work well only if market mechanisms work properly. However, efficiency of market mechanisms depend on availability of symmetric information, transparent laws and order, absence of risks and uncertainty, cost reducing infrastructure on the one hand and effective domestic and international institutions on the other to provide a level playing ground for agents to compete freely on sound basis.