Transnational “Maquiladora'’Location

Abstract

Abstract Assembly manufactures in Mexico whose production is primarily destined for export markets are referred to as maquiladoras. Maquiladoras are a growth industry generating the second largest source of foreign exchange earnings, and the country is increasingly the location of choice for (U.S.) labor-intensive manufactures. This research is an analysis of transnational assembly plant location and is organized on the premise that transnational location can be viewed as a problem of scale. At an international scale, the product life cycle provides a conceptual framework for an understanding of industrial relocation. Labor costs for industries in the later stage of their product cycle are the primary explanation for manufacturing locational change. Data on location decisions at an intranational scale were obtained by telephone and personal interviews with 300 maquila plant managers. The responses reveal that maquilas are regionally oriented along the Mexican border with reference to U.S. markets and pare...