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Because when the term was coined, The US WAS the world of Baseball. ...and it's not just American teams (unless you're using the term "American" to refer to anyone from North America). Canada has the blue jays, and used to also have the Expos until they moved to Washington and became the Nationals in 2005.

However, I believe that "World Series" is only used out of habit, and the "official" name of the championship series is actually now "The Fall Classic".

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Q: Why does baseball have a competition called the World Series when only American teams play in it?
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