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The concept of the First World first originated during the Cold War, when it was used to describe countries with whom the United States was aligned. These countries were democratic and capitalistic. Since its original definition, the term First World has come to be largely synonymous with that of developed countries, or highly developed countries (depending on which definition is being used). In general, First World countries have very advanced economies and very high Human Development Indexes. The United Nations defines the First World on the basis of its wealth: its gross national product (GNP). This being said, the definition of First World is now less concrete than it was during the Cold War.

Global dynamics between the First World and the rest of the world were essentially split into two. Relationships with the Second World were competitive, ideological and hostile. Relationships with Third World countries were normally positive in theory, while some were quite negative in practice (such as with the practice of proxy war). Present inter-world relationships are not so rigid, although there is a disparity in terms of the First World having more influence, wealth, information and advancements than the other worlds. Globalization is an increasingly important phenomenon which has been fueled largely by the First World and its connections with the other worlds. An example of globalization within the First World is the European Union which has brought much cooperation and integration to the region. Multinational corporations also provide examples of the First World's impact on globalization, as they have brought economic, political and social integration in many countries. With the rise of the multinational corporation, the problem of outsourcing has risen in many First World countries.