Advanced Placement (AP) Human Geography Practice Exam

What primary factor drives the establishment of maquiladoras in the border region?

1. Access to high-skilled labor

2. Proximity to major consumer markets

3. Availability of raw materials

4. Cost advantages in labor and operations

The correct answer is: Cost advantages in labor and operations

The primary factor that drives the establishment of maquiladoras in the border region is the cost advantages in labor and operations. Maquiladoras are manufacturing plants located in Mexico, typically near the U.S. border, that largely benefit from a combination of lower labor costs and operational expenses compared to manufacturing in the United States. By taking advantage of lower wages in Mexico, companies can significantly reduce their overall production costs while still maintaining proximity to the U.S. market. This strategic location allows for the efficient import of raw materials from the United States, which can then be transformed into products in the maquiladoras and subsequently exported back to the U.S. or other countries. While proximity to consumer markets and availability of raw materials are important considerations, the critical driving force behind the establishment of maquiladoras is the substantial cost savings in human resources and operational efficiency. Access to high-skilled labor, while beneficial for certain industries, is not the primary factor that incentivizes the establishment of these facilities, as maquiladoras typically rely more on lower-skilled labor for assembly and manufacturing tasks.