sites for these factories in part because finished goods can be shipped across the border and distributed through the American infrastructure (the distribution facilities in Mexico are poor).
Officially, the maquiladora program will end when NAFTA takes effect and eliminates trade barriers between the United States and Mexico. Under NAFTA, the maquiladoras will have to prove they can be run as independent profit centers; currently, parent firms have budged the maquiladoras as cost centers. As such, operational budgets do not include corporate overhead (such as research and development or marketing costs).
The most immediate change associated with NAFTA is the new rules of origin. Currently, up
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