“Maquiladoras” Explained
The term "maquiladora“ has its origin in the Spanish language, referring to the practice of millers charging a "maquila", or "miller's portion" for processing other people's grain. Today, “Maquiladora" is primarily used to refer to factories in Mexican towns along the United States–Mexico border, but increasingly is used to refer to factories all over Latin America. Maquiladora factories encompass a variety of industries including electronics, transportation, textile, and machinery, among others. Maquiladoras may be 100% foreign-owned (usually by U.S. companies) in most countries. The use of maquiladoras is an example of offshoring.
