Admin Table of Contents
What are the advantages of maquiladoras?
PROS 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. Low labor costs; $1.90/hour.
What are 2 drawbacks of the maquiladoras?
Potential Disadvantages to Manufacturing in Mexico
- Environmental negligence.
- Health risks.
- Cultural differences.
- Underpaid labor.
- Unsafe working conditions.
- Poor labor protection laws.
What is bad about maquiladoras?
Maquiladora workers reported similar incidences of depression and lack of control over life. Electronics workers, especially, had lower incidences of nervousness and functional impediments, after controlling for other confounders. Also, maquiladora work did not add an extra health burden compared with non-wage earners.
Are maquiladoras good for the US?
The use of the maquiladoras allows U.S. companies to maintain most of their U.S. operations, compete in domestic and international markets, and retain many U.S. jobs that would otherwise have been lost. According to Department of Commerce estimates, 25,000 jobs are created for every $1 billion in U.S. exports.
What are the characteristics of a maquiladora?
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.
Why are maquiladoras important to the national economy?
The development of the maquiladora industry in Mexico occupies a very important place in the structure of the country’s economy. Considered as a sector, it contributes to most of Mexico’s non-oil exports and represents a pole of growth and dynamism of the nation’s non-financial sector.
How do maquiladoras affect the environment?
Plants tend to fail to dispose of their waste properly, instead dumping it into the rivers or nearby colonias where most maquiladora workers live. The massive pollution created by maquiladoras over the years has made the water nearby undrinkable, the skies clouded with brown smog, and the people nearby sick.
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 have been the impacts of the maquiladora program in Mexico?
Last year, 3,527 maquiladora plants employed about 1.2 million workers, accounting for more than $40 billion of finished products shipped out of Mexico. Instead, the slumping economy that followed has caused the liquidation of 300 maquiladoras, the loss of 204,000 jobs and the slowdown of Mexican economic growth.