Maquiladora

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Related to Maquiladora's: Maquiladora System, Maquilladora

Maquiladora

A factory in Mexico established by a U.S. company to make finished products and ship them to the United States. Maquiladoras are close to the U.S. border with Mexico. They are controversial in the United States because they are thought to take away jobs from Americans who otherwise would have manufactured the products. They are also controversial in Mexico because they are thought to exploit Mexican workers. NAFTA made maquiladoras more cost effective. In the mid-2000s, maquiladoras accounted for more than half of U.S.-Mexican trade. A maquiladora is also called a maquila.
References in periodicals archive ?
where [[delta].sup.*] and [[delta].sup.d] are the cost minimization choices subject to the available technologies for the maquiladora's intra-firm trade with foreign and domestic upstreams.
The first term of equation (7) is the contribution of a volume of inputs [x.sub.jc] to the maquiladora's output f evaluated at pricey in the final good market, and the second term [1/[r.sub.j]] uc'[x.sub.jc] is the cost of vertical trade.
The price for a domestic supplier [alpha] is a function of the marginal cost a plus an intrafirm gain [PSI] which depends of the maquiladora's valuation of the intrafirm trade and the h offers received by the maquiladora.