The globalization of production and its spread to low-income
countries is the most notable transformation of the neoliberal era. Its
driving force is the efforts by companies in Europe, North America and
Japan to cut costs and raise profits, replacing relatively well-paid domestic
labor for cheaper foreign labor. The gap in global wages, in great part the
result of the suppression of the free movement of labor, provides a dis-
torted view of the global differences in the rate of exploitation (simply, the
difference between the value generated by the workers and what they are
paid) upon which profits, prosperity and social peace in Europe, North
America and Japan are ever-more reliant. Thus, neoliberal globalization
should be seen as a new imperialist stage in capitalist development, where
«imperialism» is defined by its economic foundation: the exploitation of
labor in the South by capitalists from the North.
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