Maquila (Maquiladora)

A maquiladora, or maquila, is a factory located in Mexico that imports raw materials and components from other countries, mainly the U.S., to manufacture products. These factories benefit from lower labor costs and favorable trade agreements, allowing them to produce goods like electronics, clothing, or automotive parts efficiently. Once completed, the products are exported back to the importing country, often duty-free or at reduced tariffs. Maquiladoras play a significant role in international supply chains and economic development, offering employment opportunities while integrating cross-border manufacturing processes.