Questions: Maquiladoras are production facilities set up to take advantage of Mexico's low labor cost and proximity to the United States. True False

The answer is True: Maquiladoras are production facilities set up to take advantage of Mexico's low labor cost and proximity to the United States.

Explanation:

• Maquiladoras are factories in Mexico, typically located near the U.S.-Mexico border, that import materials and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing. The finished products are then exported, primarily to the United States.
• These facilities benefit from Mexico's lower labor costs compared to the United States, making them attractive for companies looking to reduce production expenses.
• The proximity to the United States allows for reduced transportation costs and quicker delivery times, which is advantageous for businesses that rely on just-in-time manufacturing and supply chain efficiency.
• The maquiladora program was established in the 1960s and has evolved over time, particularly with the implementation of the North American Free Trade Agreement (NAFTA) in 1994, which further facilitated trade and investment between the U.S., Mexico, and Canada.