Effects Of The First Maquiladoras

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No place to work? No means through which to provide for your family? These were the issues facing the individuals in northern Mexico during the 1900s. Many people were without jobs, having no way to provide for their family. They looked high and low, but the job market was sparse, and if there were jobs available, they probably required a specialized skillset that the people didn’t have. In order to solve this problem, Mexico and America jointly began the formation of the first maquiladoras. We will determine the effect that maquiladoras have had on the history of Mexico by looking at when and why they were first started and what have been the positive and negative effects of them. First of all, lets define what a maquiladora is. A maquiladora is essentially an assembly plant. Goods are imported into a country for the purpose of exportation. In the case of Mexico, America has made an agreement with them that the U.S. can import all the machinery and equipment necessary for production in addition to the materials that need to be assembled without having to pay any taxes. In return, Mexico would provide cheap labor, assembling all the components and then shipping the majority of the products back to the U.S. at a lower tariff than other foreign countries, giving them an advantage in the market. …show more content…

The purpose of the Maquiladora Program formation was to create jobs in northern Mexico. Unemployment was shockingly high in Mexico during the mid-1900s due to environmental and other economic factors. In order to lower the rate of unemployment, Mexico and the U.S. joined together and birthed the idea of the maquiladora, a seemingly mutualistic solution to the problem for both Mexico and

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