A maquiladora (Spanish: [makilaˈðoɾa]), or maquila (IPA: [maˈkila]), is a company that allows factories to be largely duty free and tariff-free. These factories take raw materials and assemble, manufacture , or process them and export the finished product.
What are most maquiladoras making?
They provide many business incentives that the company could not utilize in their own native country. There are thousands of maquiladoras that can produce goods for various industries such as clothing, cars, and consumer electronics .
What is the function of a maquiladora?
A maquiladora is a low-cost factory in Mexico that is owned by a foreign corporation. Facilities are usually located near the U.S.-Mexico border. These plants assemble products and export them back to the United States and other countries .
What products do maquiladoras currently produce in present day?
Maquiladoras, then and now, primarily produce electronic equipment, clothing, plastics, furniture, appliances, and auto parts , and even today ninety percent of the goods produced at maquiladoras are shipped north to the United States.
What are 2 benefits of the maquiladoras?
- Location. Foreign Trade Zones offer tariff advantages and reduced paperwork. Lower distribution costs.
- Large skilled & non-skilled employment base.
- Women in the workforce.
- Political improvements; multi-party democracies.
- Economic growth. Increase workforce buying power. Low labor costs; $1.90/hour.
Are maquiladoras good or bad?
Among reasons such as, various tax benefits, proximity to the U.S., lower labor costs, and a highly skilled workforce, maquiladoras benefit not only Mexico’s workers and the country’s economy, but also the companies looking to manufacture in Mexico.
Are maquiladoras outsourcing?
IMMEX Outsourcing Program – When a company lacks the facilities to carry out production and performs the manufacturing process through a third party.
Are maquiladoras only in Mexico?
The vast majority of maquiladoras are owned and operated by Mexican, Asian, and American companies . Maquiladoras originated in Mexico in the 1960s, with many of the plants located in the border towns of northern Mexico. ... Most of the plants are not unionized.
What are the pros and cons of maquiladoras?
- Location. Foreign Trade Zones offer tariff advantages and reduced paperwork. Lower distribution costs.
- Large skilled & non-skilled employment base.
- Women in the workforce.
- Political improvements; multi-party democracies.
- Economic growth. Increase workforce buying power.
What does maquila mean in English?
: a foreign-owned factory in Mexico at which imported parts are assembled by lower-paid workers into products for export.
How many maquiladoras exist?
Despite the decline, over 3,000 maquiladoras still exist along the 2,000 mile-long United States–Mexico border, providing employment for approximately one million workers, and importing more than $51 billion in supplies into Mexico.
Why do maquiladoras exist?
The Maquiladora Program was developed to foster border region employment rates as well as further attract foreign investment , and a 1989 decree relaxed Mexico’s foreign investment laws even more, allowing maquiladoras to sell up to 50% of their products to Mexican domestic markets.
Are maquiladoras sweatshops?
Maquiladoras Are Not Sweatshops
Around the world, there are still many sweatshops, especially in countries from Asia, most of them dedicated to the clothing industry. ... In Mexico, you can make sure all maquiladoras comply with the law and do not have the same structure of sweatshops.
Do maquiladoras represent exploitation or opportunity?
Do maquiladoras represent exploitation or opportunity? The reason maquiladoras have become the preferred model of exploitation used by the Global North stems from the sheer amount of surplus value able to be extracted from the workers.
How have maquiladoras affected the US economy?
Yes , they improve the United States economy as well. Although they can decrease job growth, they increase more than decrease. An example if this increased growth is a maquiladora can have a manufacturing plant in Mexico and have several warehouses and businesses linked in the United States.
How are maquiladoras structured to make them attractive to corporations?
Maquiladoras are attractive to businesses because of the customs and duties reduction they offer and because Mexican labor is plentiful and significantly cheaper than paying for American labor.
