SUMMARY
Globalization of economy refers to a process that increases the mutual bond between business and markets by removal of the barriers and limitations in exchange of knowledge and products throughout the borders and regions. Globalization of economy refers to an emerging issue in today’s world supported by the developed countries. The main purpose of this research is to examine economic openness and inflation on profitability in the banks listed in Tehran stock exchange. The present research is an applied research in sake of aim, because the results from it can be used in the managers’ and investors’ decisions. The statistical population consists of all the banks listed in Tehran stock exchange during 2006-2014. Due to limited statistical population, the sample group is not selected and the entire population is examined. The results from the present research indicate that economic openness has an inverse effect on profitability of the banks listed in Tehran stock exchange. On the other hand, increase of inflation rate results in improvement and increase of profitability in the banks listed in Tehran stock exchange.