If it is more profitable to make plastic flags for other nations than to grow food to feed undernourished populations, then this strategy is what interest laden growth economics will encourage. Where markets are localised, what is produced reflects local requirements and income levels. When the economist Adam Smith, famous for his book Wealth of Nations, proposed ideas of free trade in 1776, transport infrastructure was smaller. Smith was correct that more specialisation and more trade between nations would supplement local production in a beneficial way. Today the world is a very different place as international trade has replaced local self-reliance and advertising has increased consumption of products we all previously did not know we needed.
Capital can now move to wherever it is most profitable.
The main strategy in market economies' development has been to encourage major corporations to move into an area with large scale specialised production in order to create jobs. This economic ignorance is especially true of social and ecological costs. The experience of many communities has been less than favourable. In the face of competition, governments have had to lure companies with cuts in tax, and with reduced environmental and wage restrictions, as well as selling other political influence. The lower prices that multinationals and economies of scale may be able to provide may be false economies.