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“If we look at today’s world, we easily discover that it is a world made up of small states,” that is what Daniel Thurer points out while emphasising on the myth and reality of small states.1 But in terms of defining such states basically three key factors are taken into consideration, i.e., a country’s geographical size, population size and its degree of influence on international affairs.2 Since small states can participate in international affairs on an equal footing with middle-sized states and the major powers, it obviously has a “democratizing” effect. Therefore, the active participation in international affairs by small states, with their different geographical and varied cultural outlook, may be crucial to “the preservation and development of global democracy.” However, in terms of economy small states differ from others in a number of aspects, including the greater vulnerability to changes in the external environment. The

The Geopolitical Dilemma of Small States in External Relations: Mongolia’s Tryst with ‘Immediate’ and ‘Third’ Neighbours