Maquiladoras in Mexico:

A) are designed to take advantage of low Mexican labor costs.
B) are different from foreign trade zones.
C) are best suited to sophisticated manufacturing and product design.
D) are reconfiguring to focus on labor-intensive assembly.
E) cannot be owned by non-Mexicans.

Maquiladoras

Factories located in Mexico, typically near the US border, that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then export the assembled product.

Foreign Trade Zones

Designated areas where goods can be imported, stored, handled, manufactured, or reconfigured without being subject to customs duty.

Labor Costs

The total expenditures related to compensating employees, including wages, benefits, and taxes.