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What role does maquiladora play in the development of a country Why is thisphenomenon seen as a new phase in capitalist development Is this a reasonable claim Therole that the maquila plays in the development of a country is an interesting topic to discuss Tounderstand the role that maquiladoras play one must first gain an understanding of the originalpurpose of the maquila Then by studying the evolution of the maquiladora to a bigmanufacturing base one may have a better understanding of how this type of firm may lead tothe development of the host country In the first section I will discuss the origination anddevelopment of the maquiladoras In section two I will provide the opinions of someeconomists and their insights as to how the maquiladora has affected developing countries Thethird section deals with capitalism and how maquiladoras play a role in the development of acapitalist economy In section four I will discuss my opinions on the arguments that I havepresented The final section will include some concluding remarks Now let us familiarizeThe word maquiladora is derived from the Spanish verb maquilar which means tomill wheat into flour Farmers would mill wheat into portions and then give a portion to themiller this portion was called a maquila As time passed the word maquila became associatedwith manufacturing assembly and packaging processes that were carried out by someone thatwas not the original manufacturer In todays economic world the word maquiladora standsfor a special type of company in Mexico Maquila Overview 1 The component that makes themaquiladora different from any other manufacturing plant is that they are allowed to import rawmaterials equipment and parts needed for assembly and export the finished good to the UnitedStates on a duty free basis Maquilas 1 The first maquiladoras were built in 1966 in Baja California and Cuidad Juarez UnitedStates firms established with the support of the Mexican government The BorderIndustrialization Program created these companies in order to channel the abundant labor sourcein
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