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[size=10.000000pt]During the second half of the twentieth century the international economy expandedin size and complexity. The integration of goods and capital markets culminated inthe 1980s and 1990s, described as an era of ‘globalization’ comparable to the latenineteenth century. As this process unfolded, there was a steady reduction in Britain’sprominence as a world economic power both in quantitative terms and in terms ofinfluence in global policy-making. This had as much to do with the evolution of theinternational economy as with Britain’s own economic strength. The rapid expan-sion in global trade and investment and the increase in the number of countriesinvolved compared to the nineteenth century inevitably left the British economy ina less prominent position. This trend also reflected a more fundamental shift of eco-nomic strength and influence toward the US economy that had begun before theFirst World War and was enhanced by America’s war experience.
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