NAFTA and North American Trade · US History

The concept of 'Maquiladoras' became a central part of the NAFTA era, referring to:

  1. Government trade officials who mediated disputes between Canada and the U.S.
  2. Manufacturing plants in Mexico that process imported components for export
  3. Special taxes levied on American tech products in Canada
  4. Agricultural subsidies given to U.S. corn farmers
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Correct answer: Manufacturing plants in Mexico that process imported components for export

Maquiladoras are factories located primarily along the U.S.-Mexico border that import raw materials duty-free to assemble goods for export. NAFTA greatly expanded the scope and scale of these industrial operations.

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