The theory in which a balance of power with two competing nations was necessary to maintain peace was:

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Realist theory is the theory that suggests that a balance of power between two competing nations is necessary to maintain peace. The realist theory believes that nations are motivated by self-interest and seek to maximize their power, and that the best way to prevent one nation from dominating others is to ensure that no single nation becomes too powerful. This theory was influential during the Cold War, when the United States and the Soviet Union were the two dominant superpowers.

The Theory in Which a Balance of Power with Two