Question

Does the idea of “buy American” limit free trade?

Answer 1

Yes, the Idea of Buy American limits the free trade in the market. the free trade is all about the nations producing the goods where they have comparative advantage, that will lower the wastage of the resources and boost economic wellbeing in the market.

If we are buying only American then we will not be able to specialise on the trade and maximise the surplus in the market, this will lower the economic activity exactly what the free trade tries to achieve.