Maquiladoras and Job Creation: Northern Mexico

The correct answer is C. Northern Mexico.

What Are Maquiladoras?

Maquiladoras are foreign-owned (mostly US) manufacturing plants in Mexico that import materials duty-free, assemble/process them, and export finished goods—primarily to the US. They operate under the IMMEX program (formerly Maquiladora Program).

Why Northern Mexico?

• Proximity to US border: Low transport costs, just-in-time delivery to US markets.
• Infrastructure: Highways, rail, border crossings (Laredo, El Paso, Otay Mesa, Calexico).
• Labor pool: Large, relatively low-cost workforce in border cities.
• Industrial clusters: Automotive (Saltillo, Ramos Arizpe), electronics (Tijuana, Ciudad Juárez), aerospace (Chihuahua, Querétaro), medical devices (Tijuana).
• Policy: 1965 Border Industrialization Program launched the model; NAFTA (1994) and USMCA (2020) cemented it.

Major Maquiladora Corridors

• Baja California: Tijuana, Mexicali, Tecate.
• Chihuahua: Ciudad Juárez (largest), Chihuahua City.
• Coahuila: Saltillo, Ramos Arizpe, Piedras Negras.
• Nuevo León: Monterrey (metro), though slightly inland.
• Tamaulipas: Reynosa, Matamoros, Nuevo Laredo.
• Sonora: Nogales, Hermosillo.

Impact

• Jobs: ~3 million direct employees (2023); ~60% women.
• Exports: >$300B/year (Mexico's largest export sector).
• Spillovers: Local suppliers, services, housing, remittances.
• Challenges: Low wages, labor rights, environmental issues, dependency on US demand.

The maquiladora model is fundamentally a Northern Mexico phenomenon—driven by geography, trade policy, and cross-border integration.