Maquiladoras

Category: Globalization

Maquilardoras are factories in third world countries where raw materials are exported. The materials are exported duty and tariff free because of free trade laws. These factories then use cheap labor and at times sweatshop like conditions to make a finsihed product out of the raw materials which is then exported out of the country, usually to the country that provided the raw materials. This practice allows for cheaper production and cost cuts for a corporation. The materials made by maquilarores factories can then be put together at a mass factory with other materials compiled from maquilarores factories from all over the world.