What is Maquiladora?


Which Mexican border town employs the most maquiladora workers?

El Paso has the largest number of workers certified under this program13,450 through 2000. Nearly 8,000 of these workers (more than 59 percent) were displaced from El Paso’s apparel industry.

How did growth in maquiladora employment before NAFTA compare with growth after NAFTA took effect?

During the five years prior to NAFTA, maquiladora employ- ment grew 47 percent. But over the first five years after NAFTA, employment growth soared 86 percent (Chart 1). This growth was not simply a matter of existing plants taking on more workers but of rapid expansion in the number of plants.

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 minimum wage in Mexico?

Mexico’s general minimum wage (Salario Minimo) was raised on January 1, 2022 to $172.87 pesos per work day, a 23% rise on the 2021 level of $141.70. The rate for 2022 along the ‘Northern Border Zone’ was raised to $260.34 pesos per work day, a rise of 23% on the 2021 rate of $213.39.

Who owns most of the factories 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.

What is a pidgin language AP Human?

Pidgin Language. Definition: A form of speech that adopts a simplified grammar and limited vocabulary of a lingua franca, used for communications among speakers of two different languages.

What kind of program of is maquiladora?

In 1965 the Mexican government established the in-bond or maquiladora program, a program that allows duty-free importation of raw materials, components and equipment needed for the assembly or manufacture of finished goods for subsequent export.

Does Mexico still have maquiladoras?

Baja California and Chihuahua make up most of the maquiladoras in the 6 border states. In addition to that, however, maquiladoras can be found throughout Mexico and many are located in Ciudad Juarez and Tijuana.

What is a maquiladora AP Human Geography?

Maquiladora. Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico. Industrial Revolution. A series of improvements in industrial technology that transformed the process of manufacturing goods.

Where do maquiladora workers live?

Workers from central Mexico began to migrate to northern Mexico to find work in the maquiladoras and to pursue the prospect of increased economic stability (Villarreal & Hamilton, 2012). Today, nearly 70% of workers in maquiladoras are migrants from central Mexico (Young, GayForts, 1994).

What is a shelter company in Mexico?

The shelter program is a modality under the IMMEX program that allows businesses to operate in Mexico without officially incorporating or establishing a legal entity in the country. Companies that use this program operate under a shelter, which is a Mexican-owned business that assumes the legal risk and liabilities.

How does maquiladora keep Mexicans in poverty?

JUREZ Despite providing Juarenses with thousands of jobs, the manufacturing industry, which is the city’s dominant employer, does not pay its workers enough, a new study says.

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.

What are some concerns about the maquiladora system?

Environment. Hazardous conditions within the maquiladoras are just the beginning of the problem. The presence of the maquiladoras combined with loosely enforced Mexican environmental laws and a lack of suitable waste storage and treatment facilities, cause the border area to be among the most polluted in Mexico.

What are the cons of maquiladoras?


  • Environmental negligence.
  • False paper unions.
  • Living wages near or at poverty level.
  • Health risks.
  • Unsafe working conditions.
  • Poor labor protection laws.
  • Sexual harassment.
  • Inadequate housing for employees.

What is Maquiladora?

How many maquiladora workers are there?

Despite the decline, over 3,000 maquiladoras still exist along the 2,000 mile-long United StatesMexico border, providing employment for approximately one million workers, and importing more than $51 billion in supplies into Mexico.

What is MAQUILADORA? What does MAQUILADORA mean …

What is a maquiladora plant quizlet?

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.

Who do the maquilas benefit?

The Maquiladora Program allows foreign companies, including those owned by Americans, to benefit from tariff incentives and other benefits granted to a national company. This is a convenient way for foreign direct investors to penetrate the US and domestic Mexican markets.

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.

What are three pros and three cons of NAFTA?

The Pros and Cons of NAFTA

  • Pro 1: NAFTA lowered the price of many goods.
  • Pro 2: NAFTA was good for GDP.
  • Pro 3: NAFTA was good for diplomatic relations.
  • Pro 4: NAFTA increased exports and created regional production blocs.
  • Con 1: NAFTA led to the loss of U.S. manufacturing jobs.

What is Fordism AP Human Geography?

fordist. form of mass production in which each worker is assigned one specific task to perform repeatedly. industrial revolution. a series of improvements in industrial technology that transformed the process of manufacturing goods.

What effect have maquiladora factories had on Mexican border towns?

in maquiladora production in Mexican border cities leads to a 1.1 to 2.0 percent increase in total employment on neighboring cities on the U.S. side of the border. 8 Hanson original estimates are bigger (from 0.15 percent to 0.3 percent) and statistically significant. wages is smaller than the impact on employment.

Why do foreign companies use maquiladoras?

The IMMEX/maquiladora program in Mexico is used primarily by foreign companies that are looking to take advantage of Mexico’s lower labor rates and other operating costs. A maquiladora is a factory in Mexico to manufactures products for export.

Why is maquiladora 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 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.

Maquiladoras in Mexico

What is a microloan AP Human Geography?

Microloans. Microloans are small credit or loans given to people in developing countries to start small businesses and help improve the economy.

How is Mexico polluted?

Air pollution is a real problem in Mexico, causing about one in 17 (5.9%) of all deaths in the country. It is the eighth largest cause of death, after factors such as diet, overweight, high blood pressure, alcohol and drugs, smoking and lack of exercise. The most dangerous of the airborne particles are known as PM2.

Do maquiladoras pay taxes?

Mexico has a value added tax, but the rate on products that maquiladoras buy in Mexico is 0; services, however, are subject to this tax, but it is always refundable to the maquiladora with respect to exports.

Why do maquiladoras seek female employees?

Thus, while many maquiladoras seek to hire women workers because they are believed to work harder and to be especially equipped emotionally and anatomically to execute such work, employers attempt to weed out potentially costly women workers from the applicant pool and at times force to resign those who become pregnant …

What is the definition for maquiladoras?

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 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.

Do maquiladoras hire labor at higher or lower wages?

The maquiladoras, in contrast, pay the lowest average wages for unskilled female labor and employ a smaller, but significant, proportion of the female labor force (28.9%).

Are maquilas sweatshops?

Maquiladoras Are Not Sweatshops The manufacturing industry in Mexico is different; the working conditions are suitable and safe for workers and they always provide social security benefits for all employees.

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.

Are maquiladoras illegal?

The maquiladoras represent a legal paradise for the American and European assembly factories that settled at the USMexican border following the signing of the North American Free Trade Agreement (NAFTA) in 1994, recently renegotiated as the United States-Mexico-Canada Agreement (USMCA).

What is the number one product produced in maquiladora plants?

These factories employ over one million Mexicans who would otherwise be unemployed. Maquiladoras mainly produce electronic equipment, clothing, plastics, furniture, appliances, and automobile parts. Since its launch in the mid 1960s, clothing has been the number one product of these factories.

What is a maquiladora?