What impact do maquiladoras have on the US?
The maquiladora industry has become an integral part of the eco- nomic and social structure of the entire United States-Mexico border. The diverse factories have brought industrialization to the region and have played a major role in fueling the population growth of com- munities along the border.
Are maquiladoras good for the US?
The use of the maquiladoras allows U.S. companies to maintain most of their U.S. operations, compete in domestic and international markets, and retain many U.S. jobs that would otherwise have been lost. Nearly all the components assembled in the U.S.-owned plants in Mexico are supplied by U.S. companies.
What are the problems with maquiladoras?
Although maquiladoras create needed employment and income in Mexico, they also contribute to many infrastructure and waste pollution problems as well as disruption of traditional Mexican family structure and values systems.
What economic impacts do maquiladoras have for North America?
Maquiladora Benefits U.S. firms become more competitive in world markets by combining American advanced technology with the lower costs of Mexican labor and materials. Mexico offers lower wage rates than many Asian countries. The average company can save nearly $1 million a year in labor costs.
What effect have maquiladora factories had on Mexican border towns?
in maquiladora production in Mexican border cities leads to a 1.1 to 2.0 percent increase in total employment on neighboring cities on the U.S. side of the border. 8 Hanson original estimates are bigger (from 0.15 percent to 0.3 percent) and statistically significant. wages is smaller than the impact on employment.
How do maquiladoras affect the US economy?
Maquiladoras in the end are good for business. They allow Mexico’s economy to increase and improve the overall quality of life for those working in them. Yes, they improve the United States economy as well. Although they can decrease job growth, they increase more than decrease.
How do maquiladoras affect the environment?
Plants tend to fail to dispose of their waste properly, instead dumping it into the rivers or nearby colonias where most maquiladora workers live. The massive pollution created by maquiladoras over the years has made the water nearby undrinkable, the skies clouded with brown smog, and the people nearby sick.
What have been the impacts of the maquiladora program in Mexico?
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. Instead, the slumping economy that followed has caused the liquidation of 300 maquiladoras, the loss of 204,000 jobs and the slowdown of Mexican economic growth.
What economic impact do maquiladoras have for both the United States and Mexico?
Hanson (2001) provided the first comprehensive research effort to estimate the impact of maquiladoras for the entire U.S.-Mexico border employment and wages. Hanson finds that a 10% increase in maquiladora’s production in Mexican border cities leads to a 1.1% to 2.0% employment increase in U.S. border cities side.