Globalisation offers opportunities for increased world income but also leads to conflicts over how gains are distributed. Developing economies struggle with competition, while low-skilled workers in industrialised countries face challenges. Trade liberalisation benefits countries mainly through their own actions. Developing countries could have gained more from trade liberalisation efforts. The international division of labour is expanding globally, influenced by domestic economic policies. Success in global markets is linked to macroeconomic stability, capital formation, and openness to global markets. Industrialised countries must focus on human capital development to maintain their competitive edge. Japan has handled adjustment needs effectively, while the EU faces high unemployment due to wage inflexibility.