Globalisation, Divided Societies and Nation-Centred Economic Policies in America and Britain

Abstract

A stronger emphasis on domestic politics and national sovereignty has recently shaped international economic relations, for instance, in the United Kingdom and the United States. This trend weakened the liberal international economic order (lio) with its promotion of globalisation and multilateralism. Why have the UK and the US, which formerly spearheaded the liberal order, embraced nation-centred foreign economic policies (ncp) under the Trump and Johnson governments? I argue that domestic forces predominantly drove this shift, since a political de facto alignment of value-based societal ideas and material interests increasingly favoured national self-determination and the privileging of domestic groups. The negative consequences of the lio such as rising income inequality, job losses and a perceived heteronomy had strengthened societal ideas and interests that converged in support of ncp. I examine these arguments by applying the societal approach to governmental preference formation in case studies on Johnson’s Brexit policy and Trump’s trade policy towards China.