The Impact Of Maquiladoras On The World 's Biggest Trade Zones Right

835 Words Oct 7th, 2015 4 Pages
By: Sharry Bhatti 10-1 Social Studies

Maquiladoras
Maquiladoras are a manufacturing company which runs in Mexico. They manufacture and assemble goods and ship them. They started to be recognized in 1994 when NAFTA (North American Free Trade Agreement) was passed, NAFTA is an agreement signed by Canada, United States, and Mexico.Which is one of the world’s biggest trade zones right now. The maquiladoras are very popular because they are cheap in a way that they can assemble goods for a cheap price. You can save up to 75 %(http://www.madeinmexicoinc.com/faq/) if you import from the Maquiladoras. Maquiladoras can manufacture goods and ship them out for duty-free and tariff free goods. Large companies then take advantage of that by using the Mexican government 's laws. how? Well they use Mexico’s “less strict environmental laws” (http://umich.edu/~snre492/Jones/maquiladora.htm) Which means that the companies can send in unprocessed material and can get it assembled by paying the workers less money.

The first positive point is that the company can get the raw materials and make it into a final product, Which then is sold in other countries like U.S. After that the country that bought the goods pays import duties after the products are sold. Import duties are the tax and tariffs, countries border agencies collect. It is also a very good thing for Mexico because they make money out of this, the other country that wants the product will get it on…
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