What is the maquiladora program in Mexico?

The IMMEX program, formally known as the IMMEX maquiladora program, allows foreign manufacturers to import raw materials and components into Mexico, tax and duty free, under the condition that 100% of all finished goods will be exported out of Mexico within a government mandated timeframe.

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. Thus, Mexico is able to attract some of the foreign direct investment it needs to grow.

How does a maquiladora differ from a regular factory?

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.

How do you say maquiladora in English?

noun, plural ma·qui·la·do·ras [muh-kee-luh-dawr-uhz; Spanish mah-kee-ah-daw-rahs]. a factory run by a U.S. company in Mexico to take advantage of cheap labor and lax regulation. Also called ma·qui·la.

What are maquiladora workers?

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 industries use maquiladora?

Examples of Maquiladoras

  • 3 Day Blinds.
  • 20th Century Plastics.
  • Acer Peripherals.
  • Bali Company, Inc.
  • Bayer Corp./Medsep.
  • BMW.
  • Canon Business Machines.
  • Casio Manufacturing.

Who are the maquiladora workers?

Maquiladoras were first developed in the 1960s as a way to encourage foreign investment and address unemployment. As such, they usually operate near the U.S.-Mexico border. Companies that operate under the maquiladora model are able to take advantage of numerous benefits.

Do you need a Mexican partner to operate a maquiladora?

Using corporate shelters allows foreign manufacturing companies to develop a Maquiladora without owning a Mexican business in the first place.

What maquiladora means?

The term maquiladora refers to a factory or manufacturing plant in Mexico. Companies that operate under the maquiladora model are able to take advantage of numerous benefits. The products manufactured by these factories are normally exported beyond the Mexican border.

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. As of 2006, maquiladoras still accounted for 45 percent of Mexico’s exports.

Where can I find a maquiladora?

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.

Are maquiladoras good or bad?

Maquiladoras in the end are good for business. They allow Mexico’s economy to increase and improve the overall quality of life for those working in them. Yes, they improve the United States economy as well. Although they can decrease job growth, they increase more than decrease.

What is the purpose of maquiladoras?

Theoriginal purpose of the maquiladoras was to employ all the unemployed people whoresided on the Mexican side of the border and also to increase Mexican exports.

Where are maquiladoras generally located?

Maquiladoras originated in Mexico in the 1960s, with many of the plants located in the border towns of northern Mexico.

What do maquiladoras produce?

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.