First World

AAA

DEFINITION of 'First World'

1. A country that was aligned with the West and opposed to the Soviet Union during the Cold War. Since the collapse of the Soviet Union in 1991, this use of First World has largely gone away.


2. A country characterized by political stability, democracy, rule of law, a capitalist economy, economic stability and a high standard of living. Various definitions have been used for First World nations, including GDP, GNP and literacy rates. The Human Development Index is also a good indicator in determining First World countries.

INVESTOPEDIA EXPLAINS 'First World'

First-world countries have stable currencies and robust financial markets, making them attractive to investors from all over the world. Examples of first-world countries include the United States, Canada, Australia, New Zealand, Japan and the Western European countries. First-world countries are in the minority; most countries are classified as second- or third-world.

RELATED TERMS
  1. Second World

    1. A country that was once controlled by the Soviet Union. Second ...
  2. Human Development Index - HDI

    A tool developed by the United Nations to measure and rank countries' ...
  3. Developed Economy

    While there is no one, set definition of a developed economy ...
  4. Lesser-Developed Country - LDC

    A country that is considered lacking in terms of its economy, ...
  5. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
  6. Organization for Economic Cooperation ...

    A group of 30 member countries that discuss and develop economic ...
Related Articles
  1. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  2. Economics

    Does High GDP Mean Economic Prosperity?

    GDP is the typical indicator used to measure a country's economic health. Find out what it fails to reveal and how the Genuine Progress Indicator can help.
  3. Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  4. Economics

    What Is The Labor Market Conundrum?

    We are facing a conundrum with investment implications: Why are wages still stagnant, when jobs are being created at the fastest pace since the late 90's?
  5. Economics

    Understanding Impairment

    In finance and accounting, impairment refers to the loss of value of a company’s capital stock.
  6. Economics

    What is a Promissory Note?

    A written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.
  7. Savings

    How Microeconomics Affects Everyday Life

    Microeconomics is the study of how individuals and businesses make decisions to maximize satisfaction. Microeconomic principles can describe many everyday experiences. We use renting a New York ...
  8. Personal Finance

    Why Are Tesla Cars So Expensive?

    What makes Tesla cars so expensive? Short supply and pricey parts is a good place to start.
  9. Economics

    What is M1?

    M1 is a measurement of money supply that includes all hard currency, plus demand deposits such as checking accounts.
  10. Economics

    What's Aggregate Demand?

    Aggregate demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given time period.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center