The Migration of Foreign Industries to Mexico
The migration of foreign industries to Mexico has been an important issue for the Mexican economy. Much of the Mexican-US border region is in the midst of an industrialization period that shows no signs of slowing. In some areas, many U.S. and foreign companies are seeking: low-wage workers, low operating costs, fewer union restrictions, and a strategically located platform from which to launch products into the American market.
What is a maquiladora (?maquilas?) Maquila is the short form of the word maquiladora. It was originally associated with the process of milling. In Mexico it became the word for another kind of processing — the assembly of imported component parts for re-export. The maquilas in Mexico began as a border phenomenon over 30 years ago. With the support of the Mexican government, US firms set up assembly plants on the Mexican side of the border. They were allowed to import components and raw materials duty-free and re-export the finished product to the US. The Maquiladora industry began in May 1966 with the passage of the Border Industrialization Program. This program made it economically profitable for American businesses to establish operations in
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