The concept of the maquiladoras was made possible by the passage of the ________.
A) Taft-Hartley Trade Act
B) North American Free Trade Agreement
C) Sherman Anti-Trust Act
D) International Commerce Act of Latin America

Question

Quizplus · Accepted Answer

The concept of the maquiladoras was made possible by the passage of the North American Free Trade Agreement (NAFTA) in 1994. This agreement eliminated tariffs on goods traded between the United States, Canada, and Mexico, which allowed companies to assemble products in Mexico using cheaper labor and then export them back to the United States without paying high import fees. This led to the growth of the maquiladora industry in Mexico, where companies could operate cheaply and take advantage of access to a larger market.

The Concept of the Maquiladoras Was Made Possible by the Passage