Maquiladoras employ over 900,000 people that would otherwise be unemployed in the crowded border towns of Mexico. In this aspect, Mexico’s goal to create jobs for the unemployed has been successful.
Because Maquiladoras in Mexico function by exporting finished goods back to the country of origin, Mexico, at least along border regions, makes enough foreign exchange to stay afloat. In this way, for many years, maquiladoras have made it possible for Mexico to have a relatively stable position in the global economy.
(Above image source: http://www.purdue.edu/vpsa/jobs/)
(Above original image source: http://witness4peace.blogspot.com/2014/04/the-reality-of-free-trade-in-mexico.html) Edited with FotoFlexer
(image source: https://www.biz.uiowa.edu/tippiemba/wp-content/uploads/2012/09/global-economy.jpg)
Maquiladoras make U.S. firms more competitive in world markets as they are able to combine the cheap labor costs attained from investing in the maquiladora sector with the advanced technology that the U.S. has.
Savings/ Greater Profits
Because Mexico offers lower wage rates than most Asian countries, U.S. companies save around $1 million dollars in labor costs when they invest in the maquila sector. Investing significantly increases U.S. companies’ profit margin.
Maquiladoras allow for the U.S. to have an increase in employment for skilled workers in the areas of warehousing, administration, and product finishing.
The cheap labor costs and savings made by U.S. companies usually results in companies being able to offer their products to customers for an affordable or cheaper price.
Header Image Sources:
Header 1 - http://www.latintimes.com/mexican-flag-day-2014-4-things-know-about-dia-de-la-bandera-154549
Header 2 - http://en.wikipedia.org/wiki/File:Flag_of_the_United_States_Recolored.png