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.
What are foreign factories in Mexico called?
Maquilas are foreign-owned factories in Mexico, many American-owned, that produce goods for export. Mexican and Asian interests also own maquilas, which sprung up like mushrooms after the rain when NAFTA took effect in 1994.
What are American factories in Mexico called?
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.
What is a maquila factory?
maquiladora, byname maquila, manufacturing plant that imports and assembles duty-free components for export.
What is the name of the factories along the US and Mexican border that assemble imported materials into finished products to be exported?
Maquiladoras are duty-free factories in Mexico along the U.S. border. Raw materials can enter the maquiladoras from the United States without facing import or export taxes. Finished products then leave the factories and enter the U.S. again without being taxed by either country.
What are foreign owned factories located in Mexico along the border with the US called?
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 is an example of maquiladora?
Factories operating under the maquiladora are most often located near the U.S.-Mexico border for easier importation of raw materials and export of finished products. … Examples of such benefits include access to foreign capital investments, duty-free import of raw materials, equipment, and machinery, and other benefits.
Do maquiladoras still 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 companies use maquiladoras?
A maquiladora is a Mexican assembly plant that imports materials and equipment on a duty-free and tariff-free basis. Maquiladoras receive raw materials from companies in the U.S. to assemble and export back as finished products.
What is a synonym for maquiladora?
a factory in Mexico owned by a foreign company that sends its products to be sold outside Mexico. Synonyms and related words. Factories and industrial buildings. abattoir. blast furnace.
Which countries have maquilas?
Maquiladoras mainly service US-based clientele, but through 11 different free trade agreements with 43 countries, Mexico hosts maquiladoras investments from many other countries including Germany, Canada, Great Britain, Australia, Korea, Japan, Israel and several South American countries.
What companies have maquiladoras in Mexico?
While Mexico has thousands of maquiladoras producing a variety of goods, the country focuses primarily on manufacturing for three major industries: Automotive. Medical Devices.
Today, the top aerospace manufacturers include:
- Bombardier Inc.
- EATON Corporation.
- GKN Aerospace.
- Goodrich Corporation.
- MD Helicopters.
What is outsourcing and what does it have to do with maquiladoras?
IMMEX Outsourcing Program – When a company lacks the facilities to carry out production and performs the manufacturing process through a third party.
What type of factories are in Mexico that assemble imported materials?
Chapter 10 Vocabulary Games Test Review
|Maquiladoras||factories in Mexico that assemble imported materials into finished goods for export|
|Mestizo||people of mixed Spanish and Native American heritage|
|NAFTA||North American Free Trade Agreement among Mexico, Canada, and the United States|
Why are many factories clustered along the United States-Mexico border?
5. The many factories clustered along The United States-Mexico border, known as maquiladoras, were clustered along the border because these factories assembled products almost exclusively for consumers in the United States.
Are maquiladoras illegal?
The maquiladoras represent a legal paradise for the American and European assembly factories that settled at the US–Mexican border following the signing of the North American Free Trade Agreement (NAFTA) in 1994, recently renegotiated as the United States-Mexico-Canada Agreement (USMCA).