If every country in the world adopted an open borders immigration policy,which of the following would happen?

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) theory suggests that exchange rates should adjust in the long run to reflect the relative prices of goods and services between countries. With open borders immigration policy, there would likely be an increase in the movement of labor and capital between countries, leading to increased trade and economic integration. As a result, prices of goods and services would become more closely aligned between countries, which would lead to a closer alignment of exchange rates, and thus, PPP would hold more closely.

If Every Country in the World Adopted an Open Borders