Globalization is an inevitable phenomenon. In this study, globalization is defined as a process of growing interdependence between all nations of the world. This linkage is encouraged by market liberalization, and information, communication and transportation technologies. Iran's economy has been shaped by oil export, so the industry and service sectors are mainly dependent on the oil income. But the dependency of the agricultural sector on oil income is very less compared to the other sectors. In 2004, this sector contributed 13.7% to Iran's Gross Domestic Product (GDP) and about 25% and 20% to occupation and Iran's non-oil exports, respectively. This situation shows that agriculture sector, though the smallest sector, plays an effective role in Iran's economy. Its production capacity is large and is capable of exporting to international markets. The results of this paper reveal that globalization has had little impact on Iran's agriculture. But, there is a meaningful difference between the quantity of agricultural production, exports and imports after and before 1995. Moreover, despite some fluctuations in the Intra-Industry Trade (IIT) and the Level of International Trade (LIT) indices, the trend lines of the IIT and LIT indices in general show increasing trend after 1995.

Globalization is a process of interaction and integration among the people, companies and governments of different nations. Globalization is centered on the integration of international markets for goods, services, technology, finance and labor. This process affects the environment, culture, political systems, economic development and prosperity, and human well-being in societies around the world. The process of globalization has altered the world economically, politically, socially and culturally, which can be defined primarily as a process of integrating the economic, social and political activity controlled by nation states into a more internationally-integrated structure.

According to Loyd, globalization on the whole, is the integration of national economy to international economy. This further integration has many effects on the production structure, the role of multinational corporations, Foreign Direct Investment (FDI), consumer's taste, and other aspects of the production and the consumption of the countries involved in trade (Curzen, 2001).

Applied Economics Journal, Globalization, Agricultural Production, Gross Domestic Product, GDP, Multinational Corporations, MNCs, Agriculture Sector, Foreign Direct Investments, FDIs, Economic Development, International Markets, Political Systems, Liberalization Policies.