Maquiladora(redirected from Maquiladora System)
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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.