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 .
Why would a company want to have a maquiladora?
Maquiladoras receive raw materials from companies in the U.S. to assemble and export back as finished manufactured goods . ... Simply put, maquiladoras benefit Mexico because they incentivize external investment by encouraging foreign investors and businesses—especially United States ones—to set up plants in Mexico.
What is the purpose of maquiladoras quizlet?
Terms in this set (6)
A maquiladora is a foreign owned plant located in Mexico. they have an advantage of cheap labor, export assembled products to the United States by export, and an import of product components .
What is maquiladora process?
A maquiladora is a mode of manufacturing in Mexico that is established by a foreign company , involving the export of the manufactured goods to the company’s country of origin. The factories benefit from duty-free and tariff-free imports of raw materials, machinery, and equipment to be used in the manufacturing process.
What is a maquiladora in Mexico?
Maquiladoras (also known as “twin plants”) are manufacturing plants in Mexico with the parent company’s administration facility in the United States. Maquiladoras allow companies to capitalize on the less expensive labor force in Mexico and also receive the benefits of doing business in the United States.
Why is Mexico an important location for industrialization?
c) Mexico has emerged as an important location in the current global system of industrial organization. One reason is the cheap labor found in Mexico . Another reason is the small amount of taxes and tariffs placed on imports and exports there. Also, there are not many environmental restrictions.
What was the most important transportation improvement in the eighteenth century?
Big canals began to be built in the 18th century to link the major manufacturing centers across the country. Known for its huge commercial success, the Bridgewater Canal in North West England opened in 1761.
What was the impact of maquiladoras?
The maquiladora industry has become an integral part of the eco- nomic and social structure of the entire United States-Mexico border . The diverse factories have brought industrialization to the region and have played a major role in fueling the population growth of com- munities along the border.
What companies use maquiladoras?
- 3 Day Blinds.
- 20th Century Plastics.
- Acer Peripherals.
- Bali Company, Inc.
- Bayer Corp./Medsep.
- BMW.
- Canon Business Machines.
- Casio Manufacturing.
What is it like to work in a maquiladora?
Working conditions in maquiladoras are described to be poor, run-down, dirty facilities that are usually poorly ventilated. Workers work long hours with little breaks in between and no benefits. The work done in maquiladoras is low-skilled labor which makes workers in the maquila replaceable, and jobs unstable.
What are the characteristics of a maquiladora?
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.
How much do maquiladora workers earn?
Despite working long hours doing many times strenuous and dangerous work, maquila workers earn only 50 cents to 1 dollar per hour . At this rate, a worker in a maquiladora working 8-10 hours would earn about $8 dollars for a day’s work.
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.
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 do maquilas represent in Mexican exports?
The most dynamic exporters in Mexico are in-bond assembly plants , known as maquiladoras. These plants import parts and components from abroad, assemble the inputs into final goods, and then export their output. They are most active in the electronics, auto parts, and apparel industries.
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.
