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I think you are making too strong a link between nationalism and isolationism.
The system by which a nation functions must be based upon a set of fundamental values. I disagree that all nations are equally good. This type of moral relativism ignores an important purpose of a "nation": the well-being of its members. In this context, I am using the definition of nation which encompasses a formal country/government. If one compares the welfare of the average citizen of nations across the world, there is a large disparity. Clearly, some nations are more successful (better) than others.
It does not necessarily follow that a nation must act narrowly in its own iterests any more than it follows that responsible, self-sufficient person does not care about the welfare of his fellow human being. In both cases, Nash's Equilibrium Theory is a good model. When we act in ways which maximize the benefit to our community (including ourselves), we are acting in way which, in the long run, is the most personally beneficial.
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