Download What are MAQUILADORAS? - worldgeographycylakes

Terms to know
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Imports- goods brought into a country
Exports-goods sent out of a country
Tariff- taxes on goods imported
Trade deficit- when a country’s
imports are greater than its exports
• Free Trade- Trade without
government tariffs, quotas or
restrictions
What are MAQUILADORAS?
• FOREIGN OWNED MANUFACTURING
PLANTS THAT PROCESS OR
ASSEMBLE IMPORTED PARTS FOR
EXPORT
• THEY TAKE ADVANTAGE OF
PLENTIFUL LOW-COST MEXICAN
LABOR
• THEY ACCOUNT FOR 49% OF
MEXICO’S EXPORTS
How it Works
• MAQUILADORAS IMPORT
MATERIALS FROM OTHER
COUNTRIES WITHOUT
PAYMENT OF ANY DUTIES OR
FEES, PROVIDED THAT THOSE
MATERIALS ARE EXPORTED
OUT OF MEXICO AFTER BEING
ASSEMBLED.
Positives
• Job creation
• Cheap consumer goods
• Prevents some people from illegally
entering the US for jobs
Critics Say…
• Maquiladoras have brought new jobs
to Mexico. Some people in the US
resent the low wages that are paid
because it takes jobs away from
Americans.
Concerns
• Many have also voiced opposition to
the impact on health and the
environment. Many factories have
been accused of air and water
pollution, while others have been
charged with improper storage or
disposal of waste products.
• The Next two slides show what cities
along the Texas border have Maquiladoras
and what states have the most
Maquiladora activity, Interior or Border
states