What does maquiladora mean?
Definition of maquiladora : a foreign-owned factory in Mexico at which imported parts are assembled by lower-paid workers into products for export.
What is an example of maquiladora?
Products Manufactured in a Maquiladora Some of the top industries using maquiladoras include medical devices, consumer products, electronics, and the automotive sector. The industries are set up mostly in Rosarito, Tijuana, and Aguascalientes.
Where is the name maquiladora comes from?
The term maquiladora refers to a factory or manufacturing plant in Mexico. These corporations are approved for operation by the country’s Secretariat of Commerce and Industrial Development under a decree established in 1989 and are owned by foreign entities.
What are some positives and negatives of maquiladoras?
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.
How do you use maquiladora in a sentence?
Examples of maquiladora
- Most plants are entirely export-oriented, and the remainder use their idle capacity as maquiladoras to supply to other factories.
- To a large extent that type of strategy adjustment is reflected in the exploding growth experienced by the maquiladoras since the mid-1980s.
What is a maquiladora AP Human Geography?
Explanation: Maquiladoras are regions of northern Mexico where American companies conduct a great deal of their business, particularly manufacturing.
Why is the maquiladora important?
Through the maquiladora framework, foreign manufacturers—predominantly U.S. companies—are able to locate labor-intensive operations in labor-abundant Mexico, thus achieving lower labor costs in the overall production process.
What is the primary benefit of a maquiladora?
Maquiladora Benefits U.S. firms become more competitive in world markets by combining American advanced technology with the lower costs of Mexican labor and materials. Mexico offers lower wage rates than many Asian countries. The average company can save nearly $1 million a year in labor costs.
Why are maquiladoras important?
Maquiladoras create employment opportunities in border regions and help reduce Mexico’s unemployment rates. Exporting foreign products increases foreign exchange in Mexico, which is very beneficial and needed. The establishment of maquiladoras reduces the commercial deficit with the United States.
What are the advantages of a maquiladora for the Mexican people?
One of the main advantages of the maquiladoras in Mexico is that all the materials, components, and production equipment associated with this type of factory can enter Mexico without paying import taxes and duties. Additionally, the production from these factories can be exported to the US on a duty-free basis.
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.
What is a maquiladora quizlet?
define a Maquiladora. 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 an example of maquiladora AP Human Geography?
Maquiladora. D:Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of much lower labor costs in Mexico.
How does the maquiladora system keeps Mexicans in poverty?
Foreign investment in these businesses keep unions out and attracts workers from poorer areas, allowing low-cost labor to prevail. Less than $8 a day is the going wage – great for the bottom line and consumer prices but very bleak for those who toil in this system.
Do maquiladoras represent exploitation or opportunity?
In fact, the maquiladoras represent an opportunity passed by. rapidly growing export production? even to the point of beginning to locate their own assembly plants in Mexico.
What is a maquiladora What are some problems associated with them?
The maquiladoras do provide Mexican border cities with a great number of jobs, but at the expense of low wages, terrible working conditions, low job security, and high exposure to toxic chemicals (EHC, 1998).
What are the potential negatives of the maquiladora system in Mexico?
Potential Disadvantages to Manufacturing in Mexico Environmental negligence. Health risks. Cultural differences. Underpaid labor.
What is the obvious drawback to dollarization?
For dollarizing countries, advantages include lower administrative costs, a firm basis for a sounder financial sector, and lower interest rates. Disadvantages include the loss of monetary autonomy, seigniorage, and a vital national symbol as well as greater vulnerability to foreign influence.
Where are most maquiladoras located?
Maquiladoras are mostly found in the Mexican border states of Baja California and Chihuahua. To be precise, the 6 border states of Mexico that make up the maquiladora border are: Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas.
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 is the maquiladora program in Mexico?
A maquiladora in Mexico is a factory that operates under preferential tariff programs established and administered by the United States and Mexico. Materials, assembly components, and production equipment used in maquiladoras are allowed to enter Mexico duty-free.
What are the benefits of a maquiladora?
Maquiladora Benefits
- U.S. firms become more competitive in world markets by combining American advanced technology with the lower costs of Mexican labor and materials.
- Mexico offers lower wage rates than many Asian countries.
- The average company can save nearly $1 million a year in labor costs.
Why do maquiladoras seek female employees?
1997), one of the reasons that maquiladoras seek female employment is because girls and women are less likely to complain about their working conditions. As they have traditionally been kept out of the economic environment and are un- or undereducated, women are often unaware of what their rights are in the workplace.
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