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This leads to an increase in productivity in the country and thus, there will be more total output which leads to expansion in world output (Case & Fair 2004, p.720). For example, a firm in Malaysia uses 5 workers to produce 10 shoes and their total wages are RM1000. If that firm hires 10 immigrants to produce the same amount of shoes with the same amount of wages, the production of shoes actually increases without any extra cost, assuming all workers has the same efficiency. When this happens to all firms, the world output for shoes will increase.
Besides that, economic globalization allows the flowing of capital freely among countries...
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