What did Iran do in 2002 to attract foreign investment?

• A. Expel foreign investors
• B. Passed laws selling large shares to foreign investors and promised limited government interference with oil
• C. Opened markets only to domestic investors
• D. Joined the World Trade Organization

Answer: (B)

The main idea is that Iran sought to attract foreign investment by making its investment climate more open and predictable, especially in the oil sector. In 2002 Iran passed laws that allowed foreign investors to own large shares in projects and promised limited government interference in oil, which reduces political and regulatory risk for foreign firms and helps ensure clearer, more favorable conditions for earning returns. This kind of policy directly targets drawing in foreign capital, technology, and expertise, rather than pushing investment away, restricting access to locals, or pursuing WTO membership as the immediate move.

Expelling foreign investors would send a hostile message to international capital and deter investment. Opening markets only to domestic investors locks out the capital and know-how foreign investors bring. Joining the World Trade Organization is a major reform path, but Iran had not joined WTO in 2002, and the specific push that year was to liberalize ownership and reduce state interference to attract FDI.