Maquiladoras
Maquiladoras are manufacturing plants located in Mexico, primarily along the U.S. border. They import raw materials and components duty-free, assemble them into products, and then export the finished goods, often back to the United States. This system allows companies to reduce labor and production costs due to lower wages in Mexico. Maquiladoras play a significant role in the economy, providing jobs and contributing to cross-border trade, but they also raise concerns about labor conditions and environmental impact.
Additional Insights
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Maquiladoras are manufacturing plants located in Mexico, typically near the U.S. border. They operate under a specific trade agreement that allows foreign companies, mainly from the U.S., to assemble products using inexpensive labor and raw materials. The finished goods are often exported back to the U.S. or other markets. This arrangement benefits companies by reducing production costs while providing jobs in Mexico. Maquiladoras play a significant role in regional economies, but they also raise discussions about labor conditions, environmental impacts, and economic dependency.