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.
Although they can decrease job growth, they increase more than decrease. An example if this increased growth is a maquiladora can have a manufacturing plant in Mexico and have several warehouses and businesses linked in the United States. This in turn increases job growth in Mexico and gives many jobs to Americans.
How can you describe the way a multinational corporation uses the Maquila industry? The parent company's rely on foreign exchange rates to set the price of labor, and consequently the drop in weight reflects the US corporate economic interest.
Tijuana is a dominant city in Baja California, Mexico with economic and industrial influence across the nation. Bordering San Diego, California, Tijuana has over 600 maquiladoras servicing the automotive, electronics, consumer products, industrial, aerospace and medical device industries.
Background: Mexico belongs geographically to North-America, ethnological it belongs to Latin America. Mexico is the most populous Spanish-speaking country in the world.
The vast majority of maquiladoras are owned and operated by Mexican, Asian, and American companies. Maquiladoras originated in Mexico in the 1960s, with many of the plants located in the border towns of northern Mexico.
Maquiladoras are ideal for companies that wish to lower operational expenses and produce goods without incurring high duties, tariffs, or labor costs. The maquiladora manufacturing model increases profitability for businesses and helps them contribute to a more stable, growing world market.
- Honda.
- Honeywell, Inc.
- Hughes Aircraft.
- Hyundai Precision America.
- IBM.
- Matsushita.
- Mattel.
- Maxell Corporation.
A maquiladora is a foreign owned plant located in Mexico. they have an advantage of cheap labor, export assembled products to the United States by export, and an import of product components. referred to the map above to explain the spatial distribution of maquiladoras with in Mexico.
The reason maquiladoras have become the preferred model of exploitation used by the Global North stems from the sheer amount of surplus value able to be extracted from the workers.
Maquiladoras created by globalization provide jobs for poor and undereducated women with few other options of employment. Because of the natures of the global economic system and issues of gender, the positions of these women of poverty are easily exploited.
Results: Despite working longer hours, receiving lower wages, and having less decision latitude and education, maquiladora workers were not worse off than service workers. Maquiladora workers reported similar incidences of depression and lack of control over life.
c) Mexico has emerged as an important location in the current global system of industrial organization. One reason is the cheap labor found in Mexico. Another reason is the small amount of taxes and tariffs placed on imports and exports there. Also, there are not many environmental restrictions.
The work done in maquiladoras is low-skilled labor which makes workers in the maquila replaceable, and jobs unstable. Maquilas throughout Mexico have been criticized for their poor or complete lack of training of employees who handle or are exposed to dangerous chemicals and waste during their work shifts.
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. This production accounted for 47 percent of total Mexican exports and consumed more than $30 billion in U.S. made components and supplies.
Despite working long hours doing many times strenuous and dangerous work, maquila workers earn only 50 cents to 1 dollar per hour. At this rate, a worker in a maquiladora working 8-10 hours would earn about $8 dollars for a day's work.
