Which of the following is true of maquiladoras?
A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) none of the above
E) all of the above

Question

Quizplus · Accepted Answer

Maquiladoras are manufacturing operations in Mexico that allow for duty-free and tariff-free import of raw materials, components, or parts from other countries, with tariffs being assessed only on the value-added portion of the production process when the final products are exported. This system encourages foreign businesses to outsource manufacturing to Mexico to take advantage of lower labor costs and favorable tariff conditions. They did not originate in China but in Mexico as part of a program to attract foreign investment, particularly from the United States.

Which of the Following Is True of Maquiladoras