Many U.S. multinational companies set up maquiladora operations south of the United States-Mexico border primarily
A) to sell products into the growing Mexican market.
B) to help diversify their product.
C) to avoid paying taxes to the Internal Revenue Agency (IRA).
D) to take advantage of the low cost of labour.

Question

Quizplus · Accepted Answer

Maquiladora operations are primarily established by U.S. multinational companies in Mexico to take advantage of the lower labor costs compared to the United States. This allows these companies to manufacture goods more cheaply, enhancing their competitiveness in global markets.

Many US Multinational Companies Set Up Maquiladora Operations South of the the United