Supply Chain Management Professional (SCMP) · Question
The 'Maquiladora' program in Mexico is an example of:
Maquiladoras are factories in Mexico, mostly located near the US border, that import materials and equipment duty-free for assembly or manufacturing and then ex
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Question: The 'Maquiladora' program in Mexico is an example of:
Answer options:
- A free trade agreement for agricultural products. ✅ An incentive program for foreign-owned factories to import materials duty-free for assembly and re-export.
- A domestic manufacturing subsidy program.
- A program to promote Mexican tourism.
Correct answer: An incentive program for foreign-owned factories to import materials duty-free for assembly and re-export.
Explanation: Maquiladoras are factories in Mexico, mostly located near the US border, that import materials and equipment duty-free for assembly or manufacturing and then export the finished products.
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