ABSTRACT

This chapter examines the concept of maquiladora in relationship to globalization, its history, the sectoral size and scope, its regional distribution in Mexico, relationships with the US, and its sometimes adverse social and environmental impacts. It includes several case studies, compares maquiladora and non-maquiladora manufacturing, and examines the future i.e. how they may change in the next 10 to 25 years and what effect globalization might have upon them. The chapter discusses that the binational set of laws and regulations are changing. Maquiladoras are a unique and important economic sector in Mexico. Maquiladoras are based on co-production that takes advantage of the relatively low cost of Mexican labor and close access to the huge US marketplace. The Juarez plant for Thompson is part of its global production strategy. It can produce at world class standards, supplying mostly the US marketplace.