Ari Gilder, 2-406!

Homework #12

1. Identify OPEC.

OPEC, or the Organization of Petroleum Explorting Countries, is a collaboration of nations, such as Iran, Iraq, Kuwait, Saudi Arabia and Venezula, which produce oil. OPEC was established in order to give the individual, relatively small nations who produce oil, more of an impact on the decisions regarding oil prices with oil companies throughout the world.

2. Why was OPEC created?

OPEC was created since most of the oil-producing countries by themselves don’t have much of a say in prices with oil companies, and they are taken advantage of. However, if they were to band together, they would have a stronger bargaining force with companies and be able to negotiate the prices they want.

3. Why does OPEC have such a major impact on world economies?

Since OPEC represents all the world’s oil-producing countries joined together, they can control the fate of the world’s oil supply. Most Western nations depend on the oil that comes from the Middle East, and because of this OPEC can use oil as an economic weapon. During the 1973 Arab-Israeli war, they embargoed certain countries who were supporters of Israel in order to pressure them to deserting Israel’s cause.

4. What caused the people of Iran to revolt against the Shah?

Althought during the 1960s and 1970s the relation between Iran and the United States and the Soviet Union were good, many people had opposed the shah’s leadership. Some people wished to establish a Communist government; others wished to rid Iran of all Western influences. The fact that Iran was rapidly modernizing had also caused problems. After 1973, Iran experienced an economic slump. Also, people had also feared the Savak, Iran’s secret police, as well as the fact that the shah tried to keep all the power in his hands. This led to mass riots and destruction, and a revolution against the shah.

5. Who assumed power after the Shah? What type of government was established in Iran?

After the shah had left Iran in January 1979, he had appointed a prime minister to take charge for the interim. However, when revolution leader Ayatollah Khomeini had returned from exile in France in February 1979, the majority of the Iranian population had sided with his views and voted to establish an Iranian republic and elect a president. Although they had elected a president, most of the power remained in the hands of Khomeini.

6.

	The Gulf War 1990-1991
	February 28, 1991 – Iraqis do not fight and Kuwait is liberated.