Domestic Free Market and Inter-National Free Market

Another source of significant confusion in the history of Capitalism is that the system has included two Markets--one domestic, one inter-National, the latter the focus of Wealth of Nations, the former the focus of contemporary varieties.  But, neither distinction is rigidly maintained--Smith often speaks of domestic Economics as governed by Free Market principles, while contemporary jingoism often effects a closing of domestic Economic ranks.  Consequently, Moral confusion often afflicts Capitalism.  For, the fundamental behavioral principle of a Free Market is the Profit-motive, which is inappropriate in a Division of Labor, i. e. while one minds one's own business in that context, one is still dependent on the well-being of others, and, so, one's Self-Interest requires that one help them, and not that one attempt to take advantage of them.  Likewise, in the context of any inter-National hostilities, the Free Market principles that normally govern domestic affairs in e. g. contemporary America, are counter-productive.  For example, in recent events, NAFTA has weakened at least some of the domestic U. S.  Economy, while tariffs--which are strictly speaking Mercantilist, not Capitalist--are designed to strengthen it, with resulting Political and Moral confusion that is neither recognized nor addressed by politicians of any orientation.  The fissures in the EU are also at least in part a reflection of the confusion.