In capitalism, bad business is punished by going out of business; the competition forces businesses to ensure quality and keep prices reasonable; i.e, it forces them to do their jobs right What happens if we treat political power in a "free market" in this way? The various political organizations could "gain" land that they govern; the people, however, are free to remain or leave. That would be the "buying or selling" Bad, corrupt governments wouldn't be as popular or successful as genuine governments, and these genuine governments grow, where the bad ones go out of power
that is essentially what would be acheived if we abolished borders and allowed people to freely move between countries. oppressive governments would have no-one left to tax, and areas with effective or no government would be the most populous.