key term - Maquiladoras

Definition

Maquiladoras are factories located in Mexico near the US border where raw materials are imported duty-free, assembled or processed, and then exported back to the originating country.

Related terms

Outsourcing: The practice of hiring external companies or individuals to perform specific tasks or produce goods instead of using internal resources.

Globalization:

The process by which businesses operate on an international scale, integrating markets, cultures, and societies worldwide.

Supply Chain: The sequence of processes involved in producing and distributing a commodity, from obtaining raw materials to delivering the final product.