Maquildoras

Category: Globalization

Altough there are maquildoras in Mexico, many corporations are now looking to China and other South East Asian countries for the production of finished goods from raw materials. They have caused over 500 maquildoras in Mexico to shut down because Chinese can afford to pay their workers only 20-35 cents an hour compared to the $1.50 that Mexican factories pay their workers. The only difference is that with South East Asian production, shipping costs need to be taken into account. Barges in America are loaded with scrap metal, sent to China and the metal is transformed into finished product and then sent back on barges to America or some other Western country.