Placement is another word for allocation, the main economic problem now is scarcity, too little resources where there are unlimited needs, tha allocation of resources in a productive manner is our best solution to this issue.. The allocation of resources can occur in two ways, either by the market forces of supply and demand, or by government intervention, the desirable way which is free market allocation occurs when supply and demand interact to produce a price that best allocates the good, this positively affects the economy of a country because resources are being best allocated through the pricing mechanism which is sometimes referred to as the invisible hand.. Now on a political level, international trade comes in, the more trade occurs between your country and another, the better the relationship between the two, it is less likely there will be arguements between two countries if they are engaging in free trade. The placement of resources may negatively affect countries if they are being allocated by the government and not by the free market, this happens because government operations are inefficient since they operate with the public interest motive and not the profit motive, thus in planned economies like in north korea, the korean citizens have very limited variety of choice, economic growth or development, and a relatively low GDP
