National boundaries affect the efficiency of resource allocation

In many developed countries, there is a deflationary pressure, which prevents the central banks from raising their base rates. However, in some developing countries, there is a huge inflationary pressure. The deflationary pressure could be seen as there is an excess of supply in the market; similarly, the inflationary pressure could be seen as there is an excess of demand. This creates an inefficient resource allocation that there are too many goods and services allocated in the developed economies. National boundaries limit the transporting of work forces, raw materials, goods and services across the boundaries. Therefore, I think that national boundaries prevent an improvement in our economies. However, I think that the real solution to solve the problem of deflation is to produce new types of goods and services that most people are willing to have by taking advantage of the technological innovations.