Many products are now made in more than one state. For example, a car could be designed in Germany, the car's silicon chips made in South Korea and the assembly of larger electronic components done in Malaysia, mechanical parts made in Mexico, the main car assembly done in Eastern Europe and the marketing, distribution and retail responsibilities going back to Germany. Multinational production capitalizes on the resources and skills available in different places, making cars cheaper. It also brings new jobs and technology to different countries and makes profits for the car company that can be re-invested in making ever better cars. Globalization makes production more efficient, thus allowing a greater distribution of wealth around the world as new production processes are introduced to developing countries. Ongoing global economic growth, coupled with the fact that the best performers tend to be particularly open to globalized forms of production (such as India and China for example), suggests that the spread of wealth is inherently linked to globalization.
However, writers in the Marxist tradition perceive globalization as a highly negative phenomenon. As with liberalism, there is no single Marxist viewpoint, but instead degrees of Marxist variation. Indeed, much anti-globalization writing is not compatible with classical Marxist thought. Fundamental to all, however, is a considerable skepticism concerning the liberal emphasis on mutual gains from economic interaction. Marxists concentrate less on efficiency gains (though many accept these may take place) and focus more on how changing production provides new kinds of economic power that can be used to extort profits from those that are weaker.
Marxists argue that globalization has given new power to people that own businesses .
("capital" in Marxist terminology). When workers in Europe or the US ask for higher wages employers can easily threaten to move production somewhere cheaper, arguing that growing competition produced by free trade will drive them out of business.
