The major reason so many companies from all over the world are embracing the maquiladoras concept is because of
A)lower transportation costs.
B)its efficient use of raw materials.
C)its ability to avoid regulatory problems.
D)improved technology.
E)cheap labor.

Question

Quizplus · Accepted Answer

The maquiladoras concept, also known as the maquiladora program, involves companies setting up factories in Mexico, near the US border, to take advantage of the cheap labor costs. This has been a major attraction for companies from different parts of the world, as it effectively reduces their labor costs and increases their profitability. While the program may offer other benefits such as lower transportation costs and regulatory advantages, cheap labor remains the primary reason for its popularity.

The Major Reason So Many Companies from All Over the World