One of the controversies associated with NAFTA is the operation of manufacturing plants that are allowed to import materials, components and equipment duty-free. These firms are called:
A) maquiladoras.
B) free trade organisations.
C) canamericos.
D) government agencies.
E) privileged.

Question

Quizplus · Accepted Answer

Maquiladoras are manufacturing plants in Mexico that import materials and equipment duty-free for assembly or manufacturing and then export the finished product. They are a direct result of NAFTA's trade agreements, allowing for reduced costs in cross-border trade.

One of the Controversies Associated with NAFTA Is the Operation