Maquiladora

A maquiladora is a manufacturing plant located in Mexico near the U.S. border that assembles or processes goods imported from the United States. These factories take advantage of lower labor costs and favorable trade agreements to produce items such as electronics, clothing, or automotive parts. Once finished, the products are exported back to the U.S. or other countries. Maquiladoras help companies reduce costs while maintaining proximity for easy transportation, but they also raise questions about labor conditions and economic dependence on border regions.