Advanced Placement (AP) Human Geography Practice Exam

What is a maquiladora?

1. A type of agricultural cooperative

2. A foreign-owned assembly plant on the U.S.-Mexico border

3. A government program for economic development

4. A multinational corporation's headquarters

The correct answer is: A foreign-owned assembly plant on the U.S.-Mexico border

A maquiladora is specifically defined as a foreign-owned assembly plant located along the U.S.-Mexico border. These plants play a significant role in the manufacturing and assembly processes, utilizing low-cost labor and favorable trade regulations. This arrangement allows companies, often from the United States, to import materials duty-free, assemble products in Mexico, and then export the finished goods back to the U.S., thus taking advantage of the economic benefits of cross-border trade. Maquiladoras have become a vital part of Mexico's economy, contributing to job creation and economic development in border regions. They operate under the Maquiladora Program, which offers incentives for foreign investment in Mexico. The existence of these plants has led to important considerations about labor rights, environmental standards, and economic disparities between the U.S. and Mexico.