Saturday 15 September 2012

Buying American in Tehran: Apples, razors and Coke - Businessweek

Even after decades of diplomatic estrangement and tightening economic sanctions, American products manage to find their way into the Iranian marketplace. The routes are varied: back channel exporters, licensing workarounds and straightforward trade for goods not covered by the U.S. embargoes over Iran's nuclear program.

It offers lessons in the immense difficulties facing Western attempts to isolate Iran's economy, which has deepening trade links with Asia where distributors serve as middlemen to funnel U.S. and other goods to Iranian merchants. But sanctions are also battering Iran's currency and driving up costs for all imports, which could increase domestic pressures on Iran's ruling system.

Although the number of Made-in-America items in Iran is dwarfed by the exports from Europe, China and neighboring Turkey, some of the best-known U.S. brands can be tracked down in Tehran and other large cities. It's possible to check your emails on an iPhone, sip a Coke and hit the gym in a pair of Nikes.

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