This page is a compilation of blog sections we have around this keyword. Each header is linked to the original blog. Each link in Italic is a link to another keyword. Since our content corner has now more than 4,500,000 articles, readers were asking for a feature that allows them to read/discover blogs that revolve around certain keywords.

+ Free Help and discounts from FasterCapital!
Become a partner

The keyword border region has 46 sections. Narrow your search by selecting any of the keywords below:

1.Job Creation and Employment Opportunities in the Border Region[Original Blog]

One of the main impacts of maquiladoras in the border region is the creation of jobs and employment opportunities for local residents. Maquiladoras are factories that import raw materials and export finished products, taking advantage of tax and tariff exemptions under the NAFTA and IMMEX agreements. Maquiladoras have transformed the economic landscape of the border region, attracting foreign investment, boosting exports, and generating income for workers and communities. However, maquiladoras also face challenges and criticisms, such as low wages, poor working conditions, environmental pollution, and gender inequality. In this section, we will explore some of the aspects of job creation and employment opportunities in the border region as a result of maquiladoras.

Some of the points we will discuss are:

1. The number and growth of jobs in maquiladoras. According to the National Institute of Statistics and Geography (INEGI), there were 3,075 maquiladoras in Mexico as of December 2020, employing 2.8 million workers. The majority of these maquiladoras are located in the border states, especially Baja California, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas. Maquiladoras have been a major source of job creation in the border region, especially after the implementation of NAFTA in 1994. Between 1994 and 2000, employment in maquiladoras increased by 86%, from 755,000 to 1.4 million workers. Although maquiladoras suffered a decline in employment during the 2008-2009 global financial crisis, they recovered quickly and surpassed their pre-crisis levels by 2011. Maquiladoras have also shown resilience during the COVID-19 pandemic, adapting to health protocols and maintaining production levels.

2. The types and characteristics of jobs in maquiladoras. Maquiladoras offer a variety of jobs for different sectors and skill levels, such as assembly, manufacturing, processing, engineering, management, logistics, quality control, and administration. Maquiladoras tend to hire young workers, with an average age of 29 years. Maquiladoras also employ more women than men, with a female participation rate of 52%. However, women tend to occupy lower-skilled and lower-paid positions than men, reflecting gender gaps and discrimination in the labor market. The average monthly wage for maquiladora workers in 2020 was 9,135 pesos (about $457 USD), which is higher than the minimum wage but lower than the national average wage. Maquiladora workers also receive benefits such as social security, health insurance, housing fund, vacation pay, and profit sharing.

3. The effects and challenges of jobs in maquiladoras. Jobs in maquiladoras have positive effects on workers and their families, such as increasing their income, consumption, savings, education, health, and well-being. Jobs in maquiladoras also have spillover effects on the local economy, such as stimulating demand for goods and services, creating backward and forward linkages with other sectors, generating tax revenues for the government, and enhancing regional competitiveness. However, jobs in maquiladoras also pose challenges and risks for workers and their communities, such as exposing them to occupational hazards, environmental pollution, labor rights violations, social insecurity, violence, migration pressures, and cultural changes. Jobs in maquiladoras are also vulnerable to external shocks, such as fluctuations in global markets, trade policies, exchange rates, and technological changes.

Maquiladoras have been a key factor in transforming the local economies of the border region by creating jobs and employment opportunities for millions of workers. However, maquiladoras also face challenges and criticisms that need to be addressed by improving labor standards, environmental regulations, social protection programs, gender equality policies, and regional development strategies.


2.A Historical Overview[Original Blog]

The maquiladora industry is a key component of the economic and social transformation of the border region between Mexico and the United States. The term maquiladora refers to a factory or manufacturing plant in Mexico that is owned and operated by a foreign company, mainly from the United States or Canada. The maquiladoras produce goods for export, using duty-free and tariff-free imports of raw materials, machinery, and equipment. They also benefit from low labor costs, favorable tax treatment, and free trade agreements. The maquiladora industry has a long and complex history that reflects the changing political, economic, and social dynamics of both countries. In this section, we will explore the origins, evolution, and impacts of the maquiladora industry in the border region. Some of the topics we will cover are:

1. The creation of the maquiladora industry in the 1960s as a response to the end of the Bracero program, which allowed Mexican agricultural workers to work in the U.S. Seasonally . The Mexican government established the Border Industrialization Program (BIP) to attract foreign investment and address unemployment in the border states .

2. The expansion of the maquiladora industry in the 1980s and 1990s, driven by the economic crisis and devaluation of the peso in Mexico, which made labor costs more competitive. The maquiladoras also benefited from the North American Free Trade Agreement (NAFTA), which eliminated tariffs and trade barriers among Mexico, Canada, and the United States in 1994 .

3. The challenges and opportunities of the maquiladora industry in the 21st century, facing increased competition from other countries, such as China and India, that offer lower labor costs and larger markets . The maquiladoras also need to adapt to new technologies, environmental regulations, and social demands from workers and communities . The maquiladoras have also diversified their products and services, ranging from clothing and electronics to cars and medical devices .

4. The impacts of the maquiladora industry on the border region, both positive and negative. On one hand, the maquiladoras have contributed to economic growth, employment, foreign exchange earnings, technology transfer, and regional integration . On the other hand, the maquiladoras have also generated social problems, such as low wages, poor working conditions, labor rights violations, environmental pollution, urban congestion, health risks, and gender inequality .

The maquiladora industry is a dynamic and complex phenomenon that has shaped the border region for more than half a century. By understanding its history, we can better appreciate its current challenges and future prospects.

OSZAR »