Henry, who played for Barcelona as well as for Arsenal, stated that high price-tags of home-grown players is driving clubs like West Ham to look for footballers abroad.
“The transfer market has gone crazy and especially for home-grown players,” the Frenchman wrote in The Sun.
“They are all good players but it certainly doesn’t make life any easier for them that they have huge price tags to justify.
“I am not sure the home-grown rule can always work. If the players are not there, regardless of how much they cost, clubs will look elsewhere.
“That is why teams like Stoke, Swansea and West Ham are being clever and looking abroad for good cheaper talent.”
West Ham United’s summer signings
West Ham signed a number of players in the summer transfer window in order to challenge for a top-eight finish in the Premier League this season.
Goalkeeper Darren Randolph arrived on a free transfer, while Spanish midfielder Pedro Obiang moved from Italian club Sampdoria.
French attacking midfielder Dimitri Payet moved from Ligue 1 outfit Marseille, defender Angelo Ogbonna came from Serie A champions Juventus and Carl Jenkinson was recruited from Arsenal on a season-long loan deal.
Attacking midfielder Manuel Lanzini also joined West Ham on a season-long loan deal - from Al Jazira - while winger Victor Moses signed on loan from Chelsea.
Winger Michail Antonio moved from Championship outfit Nottingham Forest on transfer deadline day, the same day Alex Song arrived from Spanish champions Barcelona on loan for the season.