This book seeks to find out how government interventions affect the performance of an economy. It develops notions on trade, industrial sector, and firms and examines them for the case of Iran. The analyses suggest that the excessive interventions of the Iranian government in trade and industrial sectors resulted in small benefits at high costs. Government interventions, for example, reduced the incentives of firms to undertake technological investments. They rather invested to increase their political competencies and aimed at short-term profits. Low technological investment is argued to have been one of the major reasons behind the poor performance of industrial sector in Iran.