Maquiladoras Flashcards
1
Q
Maquiladora
A
Mexican factory run by a foreign company that exports products
2
Q
Growth since mid-1960s
A
3000 workers to 1m, peso devalued so wages 10% US, lower oil prices, urbanisation, 1971 Maquiladora law means can be 100% foreign owned
3
Q
NAFTA
A
1994 North American Free Trade Agreement, no trade barriers for 10y if minimum 50% content
4
Q
NAFTA pros
A
Strong economic growth, NEE Mexico, 3x cross-border goods and money flows, US 2017 GDP 0.5% greater
5
Q
NAFTA cons
A
DT called it worst ever trade deal, less jobs in high labour cost countries
6
Q
Japan
A
Influential as supply workers to at least 31
7
Q
Future
A
Make more than current 1/2 textiles and electronics due to low cost, labour supply, easy US access
