Basco Electric Inc., an American company, has two factories in Mexico near the U.S. border. Basco gets special concessions from the Mexican government as it provides employment to the local population. The factories are an example of:

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Maquiladoras are light assembly plants built in Northern Mexico close to the U.S. border. The plants are given special tax breaks by the Mexican government, and the area is populated with workers willing to work for low wages.