ABSTRACT
The maquiladora industry plays an important role in the Mexican economy. The maquiladora industry has also played an important role in the overall US economy, providing labor-intensive activities to complement American capital-intensive manufacturing. The maquiladora industry in the Lower Rio Grande Valley (LRGV) encompasses the border municipios of Matamoras, Reynosa, and Camargo-Rio Bravo in the state of Tamaulipas in the northeastern part of Mexico. The maquiladora industry in Reynosa has a significant impact on its “sister city”, McAllen. The maquiladora industry in the LRGV is comprised of twelve main sectors producing a wide range of products. The maquiladora industry arose at a time when mass production, marked by vertical integration and large inventories, dominated the industrial sector. The international division of labor appeared to be a rational way to decrease costs and remain competitive in an increasingly competitive world.
