Companies from all over the world are embracing the maquiladoras concept mainly 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 is characterized by setting up factories in Mexico to take advantage of the lower cost of labor. Companies can save money by hiring cheaper labor in Mexico and importing raw materials, which can be used to produce finished goods for export. Cheap labor is the main reason why companies from all over the world are embracing this concept.

Companies from All Over the World Are Embracing the Maquiladoras