This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
Anagha, When you have a web application, you create a war file and specify information about it in a web.xml file. When you have a J2EE app (with EJBs), you create an ear file and specify information about it in an application.xml file.
It defines properties on the EAR-level only, and allows you to set context such as "I want this WAR to be reachable at this URL starting address". It does not contain any information for anything inside a WAR or EJB.