What is the term for zones near the U.S. border with factories that assemble components for export to the United States?

What is the term for zones near the U.S. border with factories that assemble components for export to the United States?

• A. HDI
• B. Dollarization
• C. Maquiladoras
• D. EPZs

Answer: (C)

Maquiladoras are the zones along the U.S.–Mexico border where factories assemble components for export to the United States. The term comes from maquila, meaning to supply or assemble, and these plants were created to bring in parts, process them in Mexico, and ship the finished goods back across the border, often taking advantage of favorable tax and labor conditions. They’re a specific type of export-processing zone tied to Mexico’s border industry, illustrating how location and policy work together to support cross-border manufacturing. In broader terms, export-processing zones describe similar setups in other countries, but the label maquiladora specifically refers to these Mexican border factories. Other options mentioned relate to completely different ideas, so they don’t fit the description of border assembly plants.

Maquiladoras are the zones along the U.S.–Mexico border where factories assemble components for export to the United States. The term comes from maquila, meaning to supply or assemble, and these plants were created to bring in parts, process them in Mexico, and ship the finished goods back across the border, often taking advantage of favorable tax and labor conditions. They’re a specific type of export-processing zone tied to Mexico’s border industry, illustrating how location and policy work together to support cross-border manufacturing. In broader terms, export-processing zones describe similar setups in other countries, but the label maquiladora specifically refers to these Mexican border factories. Other options mentioned relate to completely different ideas, so they don’t fit the description of border assembly plants.