Lets go right back to first principles to explain earthing and see if this helps you dekachad.
What is earthing:
The whole of the world may be considered as a vast conductor which is at reference (zero) potential. In the UK we refer to this as 'earth' whilst in the USA it is called 'ground'. People are usually more or less in contact with earth, so if other parts which are open to touch become charged at a different voltage from earth a shock hazard exists . The process of earthing is to connect all these parts which could become charged to the general mass of earth, to provide a path for fault currents and to hold the parts as close as possible to earth potential. In simple theory this will prevent a potential difference between earth and earthed parts, as well as permitting the flow of fault current which will cause the operation of the protective systems.
The standard method of tying the electrical supply system to earth is to make a direct connection between the two. This is usually carried out at the supply transformer, where the neutral conductor (often the star point of a three-phase supply) is connected to earth using an earth electrode or the metal sheath and armouring of a buried cable. Lightning conductor systems must be bonded to the installation earth with a conductor no larger in cross-sectional area than that of the earthing conductor.
The advantages of earthing:
The practice of earthing is widespread, but not all countries in the world use it.
There is certainly a high cost involved, so there must be some advantages. In fact there are two. They are:
1. The whole electrical system is tied to the potential of the general mass of earth and cannot 'float' at another potential. For example, we can be fairly certain that the neutral of our supply is at, or near, zero volts (earth potential) and that
the phase conductors of our standard supply differ from earth by 230 volts in the UK.
2. By connecting earth to metalwork not intended to carry current (an extraneous conductive part or an exposed conductive part) by using a protective conductor, a path is provided for fault current which can be detected and, if necessary, broken.
The disadvantages of earthing:
The two important disadvantages are:
1. Cost: the provision of a complete system of protective conductors, earth electrodes, etc. is very expensive.
2. Possible safety hazard: It has been argued that complete isolation from earth will prevent shock due to indirect contact because there is no path for the shock current to return to the circuit if the supply earth connection is not made. This approach, however, ignores the presence of earth leakage resistance (due to imperfect insulation) and phase-to-earth capacitance (the insulation behaves as a dielectric). In many situations the combined impedance due to insulation resistance and earth capacitive reactance is low enough to allow a significant shock current .