Buy American Requirements Act

Essay from the year 2012 in the subject Business economics - Economic Policy, grade: B, University of Cambridge, language: English, abstract: The Buy American Requirements Act was introduced with the aim of protecting businesses within the United States. There is a variety of requirements and prerequisites that are addressed in this specification. The congress is mandated with imposition regulations on federal and governmental purchases. Therefore, it is required that all the purchases made by the federal government be produced and synthesized within the United States (Dot.gov, 2014). Any purchase that surpasses three thousand dollars is bound by the Buy American Act. The Act also outlines that, for the imposition to occur, the purchase must comply with the interest of the public, be affordable as well as are to be used within the United States. According to the Act, all the acquisitions must be attributed to the components of the United States. The production cost of the acquired components must be related directly or indirectly to the United States government. The enactment of the Act was done in 1933 and there have been minor amendments since its introduction(Hughes, 1995). Various changes have been introduced in the Act to cater for domestic legislation preference.§Indirect purchases made with federal funds that are not directly related to the budget and purchase of the federal content are covered in the little buy American acts which are an extension of the Buy American Act. This law, attaches a domestic value to all purchases that are incurred in the department of transportation. Therefore, individuals, companies and organizations that are willing to invest in the transportation sector are subjected to the enforcement of this Act. The business of drone navigation systems is affected by the Buy American Act. According to the United States department