Collective and Distributive Power of the United States

America enjoys a power in the international system that is indispensable as the state wishes to take their leadership responsibilities as well as share the burdens of others. Thus the country of America enjoys both collective as well as distributive powers. (Simone, 2000, p 39) The United States of America play an important leadership role in the policies regarding the international trade. Thus the paper aims at evaluating the role of the country in international trade.Trade relations existed among economies from the period of Mercantilism in the world economy. The large economies of the world have always been dominating the small economies in their economic interaction in terms of trade. One main instance that reflects the dominance of the United States in the dealings of international Trade was the signing of the conditional MFN clause in the year 1778 between the United States and France. The equality of the privileges enjoyed in the market was to be ensured by the treaty. However, the clause held by the US was the main factor responsible for destroying the equality in the market. (Trebilcock Howse, 2005, p 50) In the period following the Second World War and the establishment of universal balance in the economies of the country, that is, after such a huge disturbance, there had been a significant increase in international trades. In order to conduct the liberalization of the world economies in a systematic way, a certain agreement was planned to be signed between the nations participating in international trade. This gave rise to the General Agreement on Tariffs and Trades, which was followed by the establishment of a general governing body for monitoring the international trade, namely the World Trade Organization. The main aim motive behind the formation of GATT was to avoid the difficulties of the policies of imports and exports of individual countries prevalent before the Second World War. An overall policy for all member countries participating in internationaltrade was the main aim.