Terms to know Imports- goods brought into a country Exports-goods sent out of a country Tariff- taxes on goods imported Trade deficit- when a country’s imports are greater than its exports Free Trade- Trade without government tariffs, quotas or restrictions

What are MAQUILADORAS? FOREIGN OWNED MANUFACTURING PLANTS THAT PROCESS OR ASSEMBLE IMPORTED PARTS FOR EXPORT THEY TAKE ADVANTAGE OF PLENTIFUL LOW-COST MEXICAN LABOR THEY ACCOUNT FOR 49% OF MEXICO’S EXPORTS

How it Works MAQUILADORAS IMPORT MATERIALS FROM OTHER COUNTRIES WITHOUT PAYMENT OF ANY DUTIES OR FEES, PROVIDED THAT THOSE MATERIALS ARE EXPORTED OUT OF MEXICO AFTER BEING ASSEMBLED.

Positives Job creation Cheap consumer goods Prevents some people from illegally entering the US for jobs

Critics Say… Maquiladoras have brought new jobs to Mexico. Some people in the US resent the low wages that are paid because it takes jobs away from Americans.

Concerns Many have also voiced opposition to the impact on health and the environment. Many factories have been accused of air and water pollution, while others have been charged with improper storage or disposal of waste products.

The Next two slides show what cities along the Texas border have Maquiladoras and what states have the most Maquiladora activity, Interior or Border states