Apparently, Persia was named by the Ancient Greeks but the actual Persians called their homeland Iran - "the land of Aryans".
As for how the name change happened, well, I found out through every lazy person's favourite reference (which, by the way, has some pretty interesting stuff on this topic if you're interested):
Quote
On 21 March 1935, the ruler of the country, Reza Shah Pahlavi, issued a decree asking foreign delegates to use the term Iran in formal correspondence. Some believe he made this decision in order to be closer to Germany, by trying to emphasize the Aryan connection between Hitler's idealistic German Aryan race and the Persian Aryan race, given that "Iran" means "land of Aryans", at a time where the German empire was slowly becoming an unstoppable superpower. Some others believed he changed "Persia" to "Iran" to present a new and modern face of the country in the world.
http://en.wikipedia...._naming_dispute
I think it's a nice thing that the rest of the world calls the nation - Iran - the same thing as the people of the nation identify their nation as. Could we soon be referring to Germany as Deutschland, China as Zhongguo, Japan as Nihon... etc?














