Final answer:
Classical liberals reconcile individualism with nationalism by advocating individual rights within the context of a sovereign nation, emphasizing that a nation's identity is built on the freedoms of its citizens.
Step-by-step explanation:
Classical liberals reconcile individualism with nationalism by advocating for the protection of individual rights and liberties while supporting the sovereignty and self-determination of the nation-state. They champion individual freedoms and a limited government, viewing the government's role as the protector of these liberties. Nationalism, on the other hand, emphasizes pride in a shared national identity and typically seeks the political autonomy of the nation. Classical liberals are supportive of nationalism insofar as it protects the freedoms and rights of individuals within the nation and does not overstep into authoritarianism.
Individuals like John Stuart Mill expanded upon classical liberalism to endorse the enlargement of personal freedom, so long as it does not harm others, reflecting liberalism's tendency to support both autonomy and national identity. Though liberal economic policies, such as free trade, add to national strength and identity, they are filtered through a lens that prioritizes individual rights and moral boundaries – all components upheld by figures like John Locke. In reconciling individualism and nationalism, classical liberals assert that a nation's success and identity are built upon the freedoms and contributions of its citizens.