What kind of determination was made with the nations of the world? In order to understand why the nations were created in the first place, we have to have a better idea of the nature of justice. The attribute of justice itself changes depending on the stage of humanity. G-d created our physical universe in order to create the ability to remove the problem of nahama d'kisufa so that the soul has the ability to create his actual status in the World to Come. G-d created the world with inherent goodness, but man must earn that goodness - hence a world based on justice; what you do is what you get. G-d added mercy to Creation because He saw that in the future, people would not have the strength to refrain from sinning and He would be forced to destroy the world. Mercy tempers judgment, thereby keeping our world in existence.