Recognizing Iran 's Trends : Iran And Natural Gas Companies

Given the number of products available, the bargaining power of customers in this industry is very high. The two main drivers for customer’s preferences are quality and price, there is no service involved.

Iran was faced with high unemployment rates and immense property, as workers had low wages and protection, and the country was underdeveloped. Iranians lost hope for a better future, as the promises of a prosperous Iran made by the Shah were not coming true. For example, the Shah believed that developing an industrial base with multiple foreign contractors and corporations would be economically beneficial for the country. Due to these investments made, Iran's oil market was flourishing in the late 1970's. However, an increase in oil profits resulted in problems with absorbing funds, leading to an increase in spending. Iran was therefore hit with effects such as inflation and corruption. Another example is that the Shah hoped for a modernization program for Iran. With this, the hope was to limit the land one could hold, decreasing the financial gap between the wealthy and poor. The result was that wealthy families continued to be as wealthy and the economic status of peasants generally worsened. Modernization also negatively affected religious institutions relying on a network of exchange, as limited land made it harder for trade. A final consequence of land reform was that peasants were forced to move to cities, begging to Westerners in order to feed themselves. These peasants began to see the negative impact western culture had made in society. They found inner peace through

A regime change in Iran could see the lifting of American trade sanctions against Iran; U.S. sanctions have had an impact on Iran’s oil economy. Mohammed Akacem, a petroleum expert at Metropolitan State College of Denver said, “U.S. oil companies would love to go to Iran, so sanctions have retarded a little bit of Iran’s ability to improve its oil sector (qtd. in Beehner).” Securing another efficient source of oil would help to ease the American economy as alternative energy sources are developed, and workers are trained to perform the

The discovery of oil reserves in the Persian Gulf marked the beginning of the evolution of Iran to a modern industrial nation. (Document A) As the demand for crude oil skyrocketed, the wealth generated by Iran soared. The distribution of this wealth became a matter of contention. Additionally, with the transformation of Iran to an industrial nation, the introduction of western culture posed a problem for the strict Islamic community. The Iranian Revolution was a result of the economic, political, cultural and religious conflict that occurred within its borders.

Wendell Berry eminently alleged, “In a society in which nearly everybody is dominated by somebody else's mind or by a disembodied mind, it becomes increasingly difficult to learn the truth about the activities of governments and corporations, about the quality or value of products, or about the health of one's own place and economy” (“Quotes About Economy”). This, in fact, relates back to the Iranian Revolution. With these caveats in place, the Iranian economy may be designated as: oil-centered, state-ruled, imports-reliant, and stagnant. During 1970, Iran had attained remarkable industrialization and economic modernization based on an import-substitution model, supported by the international request for oil. Nevertheless, this affluence was surpassed by the many socio-economic failures of the Shah, Mohammad Reza, who was the monarch of Iran. Further, the pace of growth had slowed dramatically by 1978. Since the fall of the Shah, the economy has proven to be obscure due to a combination of factors, including intrusion in the economy and instabilities in the worldwide market. Economic activity was further disrupted by years of domestic political upheaval. Among the varying classes, there was much discontent with the socio-economic changes that the Shah was implementing because the redundancy rates were extraordinary. Despite the fact that the Shah modernized Iran by emerging a sturdy central government, the Iranian Revolution was not considered an achievement because the

Over the last 70 years Iran has experienced many periods of severe political turmoil. The two most notorious periods of turmoil are the revolutions of 1953 and 1977. Both of these revolutions were heavily influenced by corporate interests, albeit in different ways. The 1953 revolution was a coup d’état arranged by the CIA in order to prevent the president from nationalizing the oil fields. This was done to protect corporate oil interests. The 1977 revolution was a reaction to the oppressive policies of the government that was put in place by the prior revolution. The government favored liberal economic policies that deregulated corporate activities, and these polices led to widespread abuse of the civilian population at the hands of the Iranian Government and foreign corporations. The events and results of these revolutions had significant effects on Iranian outlook towards western states and ideas. After the second revolution a starkly religious government had taken power, and this new regime had a strong anti-western sentiment. This sentiment developed as a reaction to the rule of the Shah, because the Shah was seen as a symbol of oppressive western power by the new regime.

Reza shah was also able to lay out his plans which consisted of implementing infrastructure projects, building a railroad system, establishing a public education system, as well as developing huge industries and overall improving the health care system, and finally reforming the judiciary branch in Iran. With all these reforms at work, Reza shah was able to turn Iran into an industrialized nation; though by mid-1930’s many religious and intellectual elites were dissatisfied by the shah’s dictatorial ways in Iran; thus foreshadowing the coming introduction of Ayatollah Khomeini against the modernized idealism of Reza shah. During World War II, Iran’s oil resources alone played a factor in overthrowing the shah (Reza), which is analyzed by Mohammad Gholi Majd in his book, Great Britain and Reza Shah: The Plunder of Iran, 1921-1941 . With Great Britain being the majority holder of the Anglo-Iranian Oil Company (AIOC), they feared the possibility of an alliance between both

Reza Shah had plans to modernize Iran while he was the ruler. These plans included developing large-scale industries, implementing major infrastructure projects, building a cross-country railroad system, establishing a national public education system, reforming the judiciary, and improving health care. (Ghasemi) Also, the rate of imports and exports increased, with Germany, the US and the Soviet Union becoming Iran’s primary trading partners. From 1954 to 1960, oil revenues increased rapidly and sustained foreign aid led to greater investment and rapid economic growth. However, inflation increased and the value of the Iranian currency decreased.

During the mid 20th century the United States supported Iran and they were close allies due to Iran’s control over the world’s oil industry. However, when the Shah attempted to nationalize their oil, the CIA organized a coup to overthrow the Shah. The appointed shah remained till 1979 when the new Shah was forced to flee the country as the Iranians began to become unhappy with the harsh rule of the Shah. This revolution of 1979 transformed their relations from a close ally to hostility.

Thirty years after the notorious Islamic Revolution of 1979, the United States has become a haven to “the largest and most prosperous population of Iranians” (Bagherpour). A constant amount of Iranians immigrated to the U.S. during the 1980s, but the number reached its climax in the 1990s (Bagherpour). When Iranians migrated to the United States, they thought it would be a temporary sojourn, but that was not the case. The Iranian society has gradually changed in the last thirty years. Iranians are now a part of American life, and they are continuing to prosper and adapt. This loss of accomplished people has greatly affected Iran’s socioeconomic status negatively.

Iran and the United States always had major tension regarding oil. American and British corporations had control over Iran’s petroleum reserves for a long time. In 1951, Iran’s Prime Minister had a plan to nationalize the oil industry. Due to this, America and Britain formed a plan to overthrow the Prime Minister and replace him with someone who would better suit their needs and interests. A new government was then installed in 1953 and in exchange for a lot of money; they gave America and Britain 80% of the oil reserves. This made people in Iran very angry because their government was spending too much money on American weapons making their own economy chaotic. Later on November 4, 1979 after the Shah arrived in New York, a group of

Iran, known as Persia until 1935, became an Islamic republic in 1979 after the ruling shah was driven out by a widespread revolution. Also known as the Islamic Republic of Iran, it borders the Gulf of Oman, the Persian Gulf, the Caspian Sea, and is located between Iraq and Pakistan. It also shares borders with Afghanistan, Armenia, Azerbaijan, Turkey, and Turkmenistan. Iran is roughly 1,648,195 square feet, the eighteenth largest country in the world with a population size of 82,801,633. It is governed as a theocratic republic, which is their legal system based on Islamic law. The judiciary system of Iran follows some aspects of Sharia law, but is also mixed with civil law that is authorized and overseen by Parliament. Alongside Parliament is their president, Hassan Ruhani, who has held office since August 2013, however; the Supreme Leader, Ayatollah Ali Khamenei, is at the very top of Iran’s configuration of power. Khamenei controls Iran’s domestic and foreign policies, serves as commander in chief of their armed forces, and directs the republic’s intelligence and security operations. Iran’s economy is characterized by its reliance on oil and gasoline exports. Their Gross National Income is 1.209 trillion per capita (PPP). Petroleum, natural gas, coal, chromium, and copper are some of their largest natural resources and their biggest export is petroleum (80%) to China, India, Turkey, and Japan. Industrial supplies, capital goods, and technical services from the UAE, China,

The economy of Iran have always been stable. Iran is one of the largest oil producing countries in the world delivering oil throughout the international communities. While Iran continue to ignore the articles of the NPT the United States along with the P5+1 are controlling weakening global sanctions. The United States and P5+1 are working to dismantle Iran’s plan to build nuclear weapons. The sanctions are against Iran and the countries they are trading with.

Iran has been very isolated from much of the outside world since the Islamic Revolution of 1978-1979, but its borders have not been closed (Hakimzadeh). To the contrary, the country has produced and hosted abundant flows of emigration and immigration, a steady coming and going mainly driven by key political events (Hakimzadeh). In its recent history, Iran has had the most spectacular brain drain in the world while simultaneously topping the list as a magnet for refugees, mainly from Afghanistan and Iraq. These refugees from troubled countries put a large strain on the Iranian economy, because their circumstances are very extreme.

The Iranian revolution of 1979 left profound significance for Iran, in that the revolution transformed the country’s political, social, economic, and legal structures. It resulted in the abolishment of the shah ruling and the establishment of a republic. In the revolution, not only secular laws were substituted with Islamic codes of law but political and military leaders in the shah government were expelled and a new elite group emerged. However, the Iranian revolution was a part of reflection of deep crisis of the entire Middle Eastern states in the 1970s. The states of the region failed to bring social justice, economic stability, and the end of