Relationship between different countries

Foreign relations of the United States - Wikipedia

relationship between different countries

At recently time, building a tight connection between other countries is difficult enough. However, it becomes essential for all countries to make. Indo-Irish relations picked up steam during the freedom struggles of the respective countries against a. Is there a relationship between countries' wealth or spending on It turns out countries' official names vary a lot among different databases.

During the cold war, India's relations with its South East Asian neighbours was not very strong.

Foreign relations of India - Wikipedia

After the end of the cold war, the government of India particularly realised the importance of redressing this imbalance in India's foreign policy.

Consequently, the Narsimha Rao government in the early nineties of the last century unveiled the look east policy. Initially it focused on renewing political and economic contacts with the countries of East and South-East Asia. After the start of liberalisation, it was a very strategic policy decision taken by the government in the foreign policy. To quote Prime Minister Manmohan Singh "it was also a strategic shift in India's vision of the world and India's place in the evolving global economy".

When India gained independence infew Indians had experience in making or conducting foreign policy.

Foreign relations of India

However, the country's oldest political party, the Indian National Congresshad established a small foreign department in to make overseas contacts and to publicise its independence struggle. From the late s on, Jawaharlal Nehruwho had a long-standing interest in world affairs among independence leaders, formulated the Congress stance on international issues.

As a member of the interim government inNehru articulated India's approach to the world.

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India's international influence varied over the years after independence. Indian prestige and moral authority were high in the s and facilitated the acquisition of developmental assistance from both East and West. Although the prestige stemmed from India's nonaligned stance, the nation was unable to prevent Cold War politics from becoming intertwined with interstate relations in South Asia.

relationship between different countries

In the s and s India's international position among developed and developing countries faded in the course of wars with China and Pakistan, disputes with other countries in South Asia, and India's attempt to balance Pakistan's support from the United States and China by signing the Indo-Soviet Treaty of Friendship and Cooperation in August Although India obtained substantial Soviet military and economic aid, which helped to strengthen the nation, India's influence was undercut regionally and internationally by the perception that its friendship with the Soviet Union prevented a more forthright condemnation of the Soviet presence in Afghanistan.

In the late s, India improved relations with the United States, other developed countries, and China while continuing close ties with the Soviet Union.

In the s, India's economic problems and the demise of the bipolar world political system forced India to reassess its foreign policy and adjust its foreign relations. Previous policies proved inadequate to cope with the serious domestic and international problems facing India.

The end of the Cold War gutted the core meaning of nonalignment and left Indian foreign policy without significant direction.

Foreign relations of the United States

The hard, pragmatic considerations of the early s were still viewed within the nonaligned framework of the past, but the disintegration of the Soviet Union removed much of India's international leverage, for which relations with Russia and the other post-Soviet states could not compensate. The Kargil War resulted in a major diplomatic victory for India.

The United States and European Union recognised the fact that Pakistani military had illegally infiltrated into Indian territory and pressured Pakistan to withdraw from Kargil. Several anti-India militant groups based in Pakistan were labelled as terrorist groups by the United States and European Union.

India has often represented the interests of developing countries at various international platforms. India's then-defence minister, George Fernandessaid that India's nuclear programme was necessary as it provided a deterrence to potential Chinese nuclear threat.

Most of the sanctions imposed on India were removed by India's extensive contribution to the War on Terrorcoupled with a surge in its economy, has helped India's diplomatic relations with several countries.

relationship between different countries

Over the past three years, India has held numerous joint military exercises with US and European nations that have resulted in a strengthened US-India and EU-India bilateral relationship. It is through shifting of their assets by rich households, banks or corporate firms that link financial markets around the world. This mobility of capital or finance to search for better yield around the world affects income and employment, exchange rates and interest rates at home and abroad.

As mentioned above, households, institutional investors, banks and corporate firms search around the world for the highest return of course, adjusted for risk. As a result, returns or yields in capital markets in various open economies get linked together. For example, if rates of interest or return on equity capital in India rise relatively to those in the USA, the US investors would try to lend or invest their capital in India to take advantage of higher returns.

On the other hand, the borrowers would turn to the USA to borrow funds from the US financial markets to take advantage of lower rates of interest. This is because a country can spend more than the income it earns from production of goods and services. It can do so by borrowing from abroad. On the contrary, a country can spend less than the value of goods and services it produces because it can lend the difference to foreigners. To understand it fully recall the national income accounting explained in an earlier chapter.

The net exports is also known as balance of trade. From the national income accounts identity given in equation 1 above we can know the relationship between net exports, gross national product and aggregate domestic expenditure. To do so we rearrange the equation 1 above as under: We have seen that saving and investment play an important role in determining the level of national income and employment in an economy in the short run. Besides, saving and investment are crucial to the long-run economic growth of a country.

It is therefore important to know how saving and investment are related to the international flows of goods and capital. This can be shown by rearranging the national income accounts identity. Let us first rewrite the national income identity. This difference between saving and domestic investment represents net capital outflow. The equation 4 above shows that net capital outflow equals net exports.