The Maquiladora Industry
Maquiladora, or the maquila industry, is a growing industry in Mexico. This type of manufacturing allows the country to take raw materials and assemble them into finished products, which are then exported. It is an efficient method of producing goods because the labor is cheap and the finished products are largely duty free. These factories are especially advantageous for foreign companies because they can import raw materials at relatively low prices and then export the products at a reduced price.
To establish a maquiladora business in Mexico, a foreign parent company will establish a Mexican corporation under its control. Once the foreign parent company receives a Foreign Relations permit, it will continue to control the Mexican corporation, which will then carry out manufacturing operations. In addition to the Mexico’s maquiladora industry, the law also recognizes the operations of specialized maquiladoras, which include agro-industrial products, fishing, and shelters. These specialized industries are responsible for creating more than 70% of the manufacturing workforce in these border states.
The majority of Maquiladora plants operate in Mexico, and are staffed by Mexican workers. These facilities are located near the Mexico border, and their products can be manufactured at cheaper wages than those in many Asian countries. Although the majority of the labor is Mexican, there are also companies owned and operated in other countries. Maquiladoras typically cost less than other countries for labor and materials. The products can be made from materials from multiple countries and assemble them by using temporarily imported parts.
A maquiladora can be found throughout Mexico, with a strong transportation system that makes it easy to transport goods from the manufacturing plant to the rest of the world. The multi-fiber agreement is one of the most important factors that affect the successful operation of a maquiladora. In addition to being a cost-effective alternative system, maquiladoras also help the country’s economy by reducing the costs of imported materials.
The Maquiladora program, which was created by the government as a tool to attract foreign investment, has surpassed the original goal. Today, there are 1.2 million workers working in Mexico’s maquiladoras. By the end of 2010, it had become the largest manufacturing platform in the world.
The Maquiladora industry is a vital part of Mexico’s economy. Its success is closely tied to the growth of the country’s manufacturing sector. Thousands of new jobs are created in these factories every day, and the economic benefits from the labor force are huge. The Mexican maquiladora industry is also a significant part of Mexico’s exports. A maquiladora is an international enterprise, a place where workers are trained and able to earn a living.