Luận văn thạc sĩ UEH main challenges of globalization of irans cities and business

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Main Challenges of Globalization of Iran's Cities and Business

Iman Farahbakhsh

University of Applied Science and Technology, Iran

Abstract

This paper consists of two sections: First section deals with description of an index of globalization and

globalization process of cities, strategies, and also the experience of some of the countries particularly China,

India, and small European cities in globalization process. The second part describes the globalization trend of

Iran specially after Islamic revolution (1979) and evidences of legislation and establishment of free zones (20

zones), then It determines Iran's situation in globalization process in economical, social and political aspects

by the result of usage of Kof and A.T. Kearney indexes. The results of this section indicate not so much good

situation of Iran in globalization process based on above-mentioned indexes (the lowest position among 62

countries) and it was completely specified that cities are sub-system of countries. The more any country

integrate in global community, the quickly the cities of that country can move towards globalization. The

results of this research show this reality that in recent decades Iran has been capitalthropic instead of capital

augmenting. The efforts for creating free economic zones to connect Iran to globalization process not only

started with delay but due to structural problems have not been so successful as well. Also Iran cities face with

serious challenges such as extensive control on different economical, social, informational, cultural sections

and lack of Foreign Direct Investment (FDI) in globalization process.

Keywords: Globalization, Problems, Approaches, Cities, Iran

History of globalization

The review of philosopher's ideas from ancient time until today shows that there has been constant dispute

between the advocates of political and universal theory and those who demand to establish a nation-state and

a kind of defense wall against the influence of other nations and tribes. Any way this matter has taken into

consideration by word of divine religions to the speech of the great philosophers like Marcos, poets like

Homer, Ferdowsi Sadi, Tagor, Eghbal and politicians like Jawaharlal Nehro etc. (Mohammadi et.al, 2007, 1).

Nevertheless the history of practical movement related to globalization returns to activities about

establishment of free economic zones. For the first time the free zone as a new concept was established in

Hamburg port in Germany in 1888. Then before World War II, this process developed in other countries such

as Finland, Macao, and Hong Kong, Singapore etc. At this time the activity of free economic zone was more

concentrated on trade. But the first free economic zones in new concept were Shanoon that was inaugurated

in Ireland in 1959. For the first time the main goals of Shanoon was attracting foreign investment, transferring

technology and creating employment. The establishment of free trade-industrial zone in developing country

is an economic phenomenon in recent 25 years. (http: /// www. Freezones. Ir/ World Free zones/ world free

zones History/ tabid/ 145/ Default. aspx).

Free zones are bridge between international and national economy. The most principle subject of free

economic zones is foreign investment. As soon as unsafe and low-efficiency, it leaves free zone and move to

more safety area. So, by development of Information and communication Technology (ICT), the trend of

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