‘World Music’ is a traditional type of music genre which comes from a certain country or origin where the music started. For example Ireland's traditional music is Irish folk, and Spain traditional music is Andalusian also known as flamenco music. If you were to classify these genres, you would class them as ‘World Music’ and this music would be exclusive to their part of the world.
On the other hand, modern day HMV music store would include music from all different music genres all over the world. But there might be some genres that do not sell as well as others, to and from places like America and England.
I believe we have this category for a reason because it may give people an insight to a multi-cultural world we live in, which then gives us the opportunity to listen and learn from these different types of music.
Your final line offers an optimistic vision of a music industry categorising musics for the improvement of society, I hope you are right but fear that there may be a rather more economic imperative at play.
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