Maquiladoras
Definition
Maquiladoras are foreign-owned factories in Mexico that import raw materials duty-free, assemble or manufacture products, and then export them back to the country of origin. They often provide low-wage employment opportunities for Mexican workers.
Analogy
Think of maquiladoras as outsourcing companies but on a larger scale. Just like how a company might hire another company to handle certain tasks, maquiladoras allow businesses to set up factories in Mexico to take advantage of lower labor costs.
Related terms
Globalization: The process of increased interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.
Free Trade Agreement: An agreement between two or more countries that eliminates tariffs and other barriers to trade.
Labor Rights: The basic rights that workers have in relation to their employment, including fair wages, safe working conditions, and the right to form unions.
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