We live in a competitive world. Technology, medicine, information, production and productivity: it is what nations, companies and people seek to provide in order to improve the life of people and satisfy their needs. Modernity is complex, and its functioning has led us to an interdependent and interconnected world like it hasn’t been before. In this context, what would be maquiladoras role in globalization?
Globalization and the Modern Life
Doing business in today’s context is not simple, but when we have the proper information and know how the market works, it can save us a lot of time and inconveniences. With technological advances and international connection, we cannot ignore the challenges and benefits of living in a globalized world.
Globalization facilitates cooperation between countries. Trade has evolved throughout the centuries to become what it is today. In order to get certain services, goods and technology from around the world, we create channels to exchange money, products, labor, infrastructure, jobs and many other aspects. Maquiladoras are a great example to understand international business and the modern economy.
Cooperation and Results
Maquiladoras are foreign companies that decide to set up in Mexico to carry out full or a part of production to get better costs, exemption of tariffs and improve the quality of the finished goods, among other things. This means that countries like, for example, the United States rely on Mexico to increase their productivity and enhance their supply chain, and in exchange they invest in the country and provide job opportunities and a better quality of life.
The former has been possible by trade agreements carried out by different nations, such as the NAFTA, created in 1993, which increased the potential and cooperation between United States, Mexico and Canada. Ever since, the maquiladora model has seen great growth and provided economic opportunities and development for the Mexican people.
This gives us an idea of how maquiladoras help the world to be more connected, to depend on each other to carry out economic activities and to keep striving for better results, always.
Today, maquiladoras have become a motor and a result of globalization. If you want to get more information on this topic, or get to know how maquiladoras and its competitiveness in Mexico can help your foreign company, we can help you. At Tijuana EDC we provide professional advice on foreign investment and international business. Contact us!