Indeed, many interactions in the economy that require coordination among economic agents may result in suboptimal aggregate outcomes, even if all agents pursue the same interests. In addition to coordination failures, models involving representative agents appear particularly ill-suited to address distributional issues, for example those involving employed and unemployed workers.
Yet I would also argue that home regulators should recognize host jurisdictions may take action to restrict the flow of resources, or worse yet, demand resources in the moment of crisis, even if the stress does not originally emanate from their location. Such actions tend to both limit the flexibility of the home regulator and undermine cooperation in times of stress.