Rather than fighting crime like Bruce Wayne, Tony Stark's focus was foreign policy. In 1963, while prototyping a new Stark Industries weapons system for our advisors in Vietnam, he was captured by "red guerilla tyrant" Wong Chu, who put him to work building a superweapon for some nefarious purpose. Stark, though, secretly banged together a robot exoskeleton (perhaps inspired by the mobile infantry power suits in Robert A. Heinlein's 1959 novel Starship Troopers) and smashed his way out.
The movie is transplanted to Afghanistan in 2008. The villain isn't the Taliban (there are a lot of Muslim potential ticket-buyers out there), but a freelance warlord who has assembled a multicultural gang of mercenaries from across the Eurasian steppe, from Hungary to Mongolia, to rebuild the empire of Genghis Khan. (How using Stark's high tech weaponry to pillage one mud brick village in the Hindu Kush gets him closer to world domination isn't explained.)
In most action movies, the bad guy's henchmen are suicidally devoted to the cause, even if they are just in it for money. In a clever touch of realism in this consistently enjoyable film, however, the hired goons are just bullies who flee in terror from what looks like a man wrapped in pick-up truck bumpers.