“Globalization made some countries to gain more in global economy at the expense

of other nations.”
Gross Domestic Product (GDP) is most commonly measured by using the
expenditure method, which calculates GDP by the private consumption + gross investment
+ government investment + government spending + (exports – imports).
The U.S economy is the largest in the world in terms of Nominal Gross Domestic
Product (GDP), having approximately $20.49 trillion. The economy’s service sector, which
includes banking, real estate, insurance, high consumer spending, technological innovation,
low unemployment, capital investment, professional and business services, and healthcare,
is the largest contributor to GDP. The economy of the United States is largely open, allowing
for flexible company investment and foreign direct investment. It is the world’s dominant
geopolitical power and is able to maintain a large external debt as the producer of the
world’s primary reserve currency. In many businesses, the U.S economy is at the cutting
edge of technology, but is facing growing risks from economic inequality, rising healthcare
and social safety net expenditures, and failing infrastructure.
China has the world’s second-biggest nominal GDP, with approximately $13.61
trillion and the highest nominal GDP in terms of Purchasing Power Parity (PPP). Foreign
and domestic trade and investment have expanded as the government has steadily phased
out collectivized agriculture and industries, allowing greater freedom for market prices,
and expanded company autonomy. This, combined with as industrial policy that supports
home manufacture, has propelled China to the top of global export rankings. Despite these
benefits, China confronts numerous problems, such as a rapidly aging population and
serious environmental damage.
Japan is the third largest economy in the world. Its GDP crossed the $4.97 trillion
mark in 2019. Strong co-operation between government and industry and advanced
technological know-how have built Japan’s manufacturing and export-oriented economy.
However, Japan is poor in natural resources and dependent on energy imports, especially
after the general shutdown of its nuclear power industry. The country also struggled with a
rapidly aging population.
Outsourcing has allowed developing countries to gain more in developed countries.
These three world’s biggest countries by Nominal GDP have suffered with manpower,
environmental degradation, and energy imports, which benefits developing countries
because they were employed by industrialized countries. In order to maintain their
economic status, they found solutions to their difficulties by hiring people from different
countries.
On the other hand, having a large Nominal Gross Domestic Product does not literally
mean that the economy of those leading countries is doing well. Gross Domestic Product
(GDP) sums up all the prices of all finished goods and services. Nominal GDP prices can
increase. Its number goes up but the economy is not actually producing more goods and
services. Its inflation is what driving the higher GDP.

In year 1, country A has purchased 100 phones at $2,000 each.

In year 2, country A has purchased 75 phones at $2,200 each.
Country B has increased by 20% in year 2. However, Country B has lesser income in
year 2 having $165,000 compared to year 1 having $200,000. This literally means that the
country has a higher percentage in terms of Nominal GDP, but does not actually earn more.
Due to inflation, the country has to spend more in their production.

Reference:
Caleb Silver- The Top 25 Economies in the World (2020)
Retrieved from: https://www.investopedia.com/insights/worlds-top-economies/