I think you will find this link useful. In my view, buying American or local can be beneficial but not for the sake of itself. If you have two products of equal quality then buying the local one may enrich you, as those employee’s now may have the additional income to purchase whatever good or service you provide. More likely than a direct transaction a chain of seemingly unrelated exchanges will somehow end in your benefit. If the local product is more expensive, loyalty to a local good cuts competition significantly. On the surface it does not seem much has changed for you between the two different scenarios but if everyone is needlessly paying for a more expensive good then, in the least, the lower income earners in your region may be less able to purchase your good or service.
As for morality, I’m not sure that is really any component of this at all. We happily buy goods made in China but I don’t think people do it for the sake of the Chinese or refuse to buy Chinese goods out of malevolence toward them. But If at war with them, what then is the wisdom of continuing to do business? I find it odd that even in a war situation business between warring states seems to continue, odd indeed.
If you would like a more qualified response you might let GP or Herbs take a look at your question.