Governments must strike a balance between conflicting interests and goals while working cooperatively with other countries to foster global economic development and stability due to the diverse and complicated nature of the involvement of nations in national and worldwide economic challenges. This study examines where nations come from and the many forms they endure. How countries handle diversity is spelled out in this study. Government interventions in the market, international commerce and economic growth, agricultural advancements, and demographic changes are all covered in this study. Throughout this paper, we covered a wide range of topics, including the nature of governments on a global scale and domestic concerns. In this study, we look at these questions from a national economic viewpoint. It analyses national-level policies that governments may enact to foster economic development, job creation, and social welfare. Economic diplomacy is analysed as a tool for national interest promotion and global economic development and stability maintenance.