Free Essays on 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? (â€Å"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 the northern Border States from Tijuana Mexico to the border towns near Texas. In Mexico, American maquilas have found a cheaper workforce. This has been one of the greatest motives for American industries to go to Mexico. With what a normal American worker gains in one day, a Mexican worker can be paid a whole week. If this is looked at in a future perspective, the maquila is going to make and gain more money over the years. This money can be used for many things; for example, for improving the installations, to give the worker better pay, to buy more infrastructures or just to save it for future investments. The existence and development of the maquiladora industry in Mexico is due primarily to foreign investment. There are many countr... Free Essays on The Migration of Foreign Industries to Mexico Free Essays on 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? (â€Å"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 the northern Border States from Tijuana Mexico to the border towns near Texas. In Mexico, American maquilas have found a cheaper workforce. This has been one of the greatest motives for American industries to go to Mexico. With what a normal American worker gains in one day, a Mexican worker can be paid a whole week. If this is looked at in a future perspective, the maquila is going to make and gain more money over the years. This money can be used for many things; for example, for improving the installations, to give the worker better pay, to buy more infrastructures or just to save it for future investments. The existence and development of the maquiladora industry in Mexico is due primarily to foreign investment. There are many countr...