Question

Scenario: Blickinstock at the Crossroads Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin America. To that end, Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary. Keith Moon, Blickinstock's vice president of global business development, will be making a presentation to the board outlining the company's options. If board members ask about the maquiladora industry, Keith would explain that it refers to ________.

Answer 1

A maquiladora is a factory that imports raw materials (usually benefiting from special tax regimes), processes them and manufactures goods that are exported to the company's home country. Maquiladoras benefit from low wages and are generally labor intensive industries.

E.g. many maquiladoras work in the textile industry, where they import all the materials they need, and then they manufacture clothes which are exported to other countries.