Classical liberalism is presented as an alternative to the two established approaches to liberal international political economy, rational choice and neoliberal institutionalism. Classical liberalism diverges from rational choice by eschewing the assumption of rational utility-maximisation in perfectly competitive markets. Contrary to neoliberal institutionalism, it underlines the domestic or national preconditions of international order, with a policy emphasis on unilateral trade liberalisation in the context of market-like institutional [or intergovernmental] competition. This contrasts sharply with neoliberal institutionalism's preference for contingent or reciprocal trade liberalisation within the complex organisational machinery and cartel-like tendencies of intergovernmental negotiated cooperation.