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In 1994 why did so many American companies relocate their factories to Mexico?
Wiki User
∙ 6y ago
Actually, they didn't; the maquiladora program, which allowed foreign investors to setup manufacturing and assembly plants along the U.S.-Mexico border, started in 1965.
In 1985, due to cheap labor, tax incentives from the Mexican government, deregulation from US custom laws (i.e. during the Reagan presidency) and several devaluations of the Mexican peso, many American and foreign-owned companies moved part of their manufacturing to Mexico; especially those processes that were repetitive and labor-intensive.
After NAFTA came into effect in 1994, the trend continued at a faster pace, until 2001 when China entered the World Trade Organization, and many maquiladoras -- such as those related to textiles, furniture, footwear and toys -- were relocated again; this time to China.
Wiki User
∙ 6y ago
Wiki User
∙ 6y agoActually, they didn't; the maquiladora program, which allowed foreign investors to setup manufacturing and assembly plants along the U.S.-Mexico border, started in 1965.
In 1985, due to cheap labor, tax incentives from the Mexican government, deregulation from US custom laws (i.e. during the Reagan presidency) and several devaluations of the Mexican peso, many American and foreign-owned companies moved part of their manufacturing to Mexico; especially those processes that were repetitive and labor-intensive.
After NAFTA came into effect in 1994, the trend continued at a faster pace, until 2001 when China entered the World Trade Organization, and many maquiladoras -- such as those related to textiles, furniture, footwear and toys -- were relocated again; this time to China.
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Special factories in Mexico owned mainly by American companies are called?
Maquiladoras
What are factories in Mexico that are owned by companies based in other countries called?
Maquiladoras.
Why did Hershey fire all their American workers and relocate their plants to Monterrey Mexico?
Lower production costs qualify as the main reason. Besides a much cheaper workforce, Mexico also has good road infrastructure. This allows greater profits, even compensating for the high costs incurred to relocate into Mexico.
Does Apple have a factory in Mexico?
No, Apple does not have it's own factories, it contracts third party companies like Foxconn
How many American companies do business in Mexico?
Thousands. Most American companies have at least one branch or subsidiary in Mexico. Some examples include Ford Motor, General Motors or Hershey's.
What are the names of factories in Mexico?
You should note that not all factories in Mexico have this term; only foreign-owned assembly plants are known as maquiladoras.
What US companies have factories in Mexico?
Most of them do. From American Greetings to Zenith, many kinds of businesses have factories and assembly plants in Mexico. Some others include:BellSouthCoca-ColaEvenfloGoodrichKraft foodsPepsiCoRayovacSamsoniteXerox
Why did Mexico's government refuse to allow foreign factories in Mexico's?
It was the exact opposite. Mexico has allowed foreign factories in Mexico, especially along the US-Mexico border. These are known as maquiladoras, which assemble finished products from imported parts. Some examples include electronic and household items, with parts coming from Taiwan, the United States or Japan, which are then assembled in say, iPhones and then sold back to the American and European markets.
What are maquilduras?
Foreign-owned factories in northen mexico.
Who is responsible for the incentive for Maytag to move to Mexico?
The consumers: people always looks for cheaper products, so many companies need to reduce costs unless they risk getting out of business. Countries like China or Mexico have much lower wages so these companies typically close their factories in the US and move to these countries.
Why have Canada and us put more factories in Mexico?
The United States and Canada are highly developed countries, while Mexico is not. This means a worker in the US would earn some 30-40 USD$/hour, while in Mexico the same worker would earn just 5-6 USD$/hour. This wage difference means a lot in savings for American and Canadian companies, who then "offshore" their production to Mexico and other countries with lower wages, such as Vietnam or China.
Is it false that during their period of colonial domination the Spanish forced much of Mexico's amerindian population to relocate to urban settlements?
This statement is actually TRUE. They DID relocate the amerindians to urban settlements.
