ABSTRACT
This chapter analyses the geopolitical and economic situation in the world. It looks at the interlinkages of India as a nation-state with the supranational organisation of ASEAN with which the country makes a contiguous boundary, and how security and economic compulsions have necessitated reordering of their mutual relations. There are three centres of accumulation in the world: North America, the European Union and Asia. In each of these centres, the dominant players are trying to strengthen their hold over their region’s trade and investment. The decision of allowing India to join the ASEAN Regional Forum may prove to be useful both for the ASEAN and India in taking care of their security and trade interests in a dynamically changing regional and global situation in the post Cold War world. The tectonic changes that have accompanied the end of the Cold War, a significant yet little noticed shift has taken place in the maritime trade of the world.
