The EU is the world’s biggest economy with a GDP of more than $12 trillion in 2005, slightly larger than that of the United States.
Its currency, the euro, can pose a threat to the dominance of the US dollar.
Its share of world trade is three times larger than that of the United States allowing it to be more assertive in trade disputes with the US and China.
Its economic power gives it influence over its closest neighbours as well as in Asia and Africa.
It also functions as an important bloc in international economic organisations such as the World Trade Organisation (WTO).

Political influence:

The EU also has political and diplomatic influence. Two members of the EU, Britain and France, hold permanent seats on the UN Security Council.
The EU includes several non-permanent members of the UNSC. This has enabled the EU to influence some US policies such as the current US position on Iran’s nuclear programme.
Its use of diplomacy, economic investments, and negotiations rather than coercion and military force has been effective as in the case of its dialogue with China on human rights and environmental degradation.

Military influence:

The EU’s combined armed forces are the second largest in the world.
It’s total spending on defence is second after the US.
Two EU member states, Britain and France, also have nuclear arsenals of approximately 550 nuclear warheads.
It is also the world’s second most important source of space and communications technology.
Thus as a supranational organisation, the EU is able to intervene in economic, political and social areas.

Question - 12 : - The emerging economies of China and India have great potential to challenge the unipolar world. Do you agree with the statement? Substantiate your arguments.

Answer - 12 : -

The Indo-China relations experience strategically organised as rising economic powers in global politics and to play a major role in the Asian economy after the end of the Cold War. It can be proved on the following grounds:

The new economic policies of India and China have broken their economy from stagnancy.
The creation of special economic zones led to a phenomenal rise in foreign trade.
If India and China are able to lead a coalition of countries, this coalition would be more powerful and may accomplish their goal.
India had adopted the policy of liberalisation and globalisation. It has made tremendous progress. India along with China view themselves as rising powers on global politics and can challenge the unipolar world.
China has become the most important destination for foreign direct investment anywhere in the world. Hence, it has large reserves for foreign exchange to allow it to make a big investment in other countries.

Question - 13 : - The peace and prosperity of countries lay in the establishment and strengthening of regional economic organisations. Justify this statement.

Answer - 13 : -

It is true to state that the peace and prosperity of countries lay in the establishment and strengthening of regional economic organisation.

This statement represents the ASEAN Regional Forum and the European Union, where ASEAN Regional Forum is based on the notion not to escalate territorial disputes into armed confrontation.

The ASEAN is rapidly growing into a very important regional organisation. Its Vision 2020 has defined an outward-looking role in the international community. This builds on existing ASEAN policy to encourage negotiations over conflicts in the region. Thus, ASEAN has mediated the end of the Combodian conflicts, the East Timor crisis, and meets annually to discuss East Asian cooperation.
ASEAN Regional Forum (ARF) maintains coordination of security and foreign policy.
The EU has also been funded on the ground of common foreign and EU security policy, cooperation on justice and home affairs.
The European Union has also extended cooperation while acquiring new members, especially from Soviet bloc.

Question - 14 : - Identify the contentious issues between China and India. How could these be resolved for greater cooperation? Give your suggestions.

Answer - 14 : -

The contentious issues between China and India are as explained below: relations with China experience friendly gestures from India as India signed popular ‘Panchsheel’ to develop Indo-China relations in l954 and advocated China’s membership to the United Nations. Still, after 1957, various contentious issues arose in Indo-China relations:

Border conflict of 1962 over competing for territorial claims principally in Arunachal Pradesh and Aksai Chin region of Ladakh.
Differences originated from the Chinese takeover of Tibet in l950, and the final settlement of the Sino- Indian border.
After Panchsheel, attack by China on India in 1962, to occupy larger territories of India, created humiliation.
China’s assistance to Pakistan’s nuclear programme also created differences.
China’s military relations with Bangladesh and Myanmar were viewed as hostile to Indian interests.

All the above-mentioned differences/ disputes could be resolved for greater cooperation-

Both the countries should make some more efforts to revive the harmonious attitude between themselves.
Both the countries should move hand-in-hand to fight against terrorism, nuclear race and economic disparities.
Both countries should develop understanding and respect.
Hence, both of them have signed agreements on cultural exchange and cooperation in science and technology.

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