Maquiladora experts in Tijuana are largely employed by international firms looking to take advantage of Mexico's lower labor rates and other operating costs. A maquiladora is a Mexican factory that manufactures goods for export. The bulk of Tijuana's Maquiladora expertise makes things for the US market, but due to Mexico's numerous free trade agreements, they are able to export goods all over the world.
Maquiladoras import raw materials from American companies, assemble them, and then export the finished goods back to the US. Maquiladora experts in Tijuana offer a number of benefits. The following are a few of the more common ones.
Location
With a few exceptions, maquiladora experts in Tijuana can be found anywhere in Tijuana. From a logistical standpoint, though, creating a presence at the Mexican-US border makes more sense. Many maquiladora experts in Tijuana are also conveniently located near airports, highways, trains, and port facilities.
Proximity helps with cost savings, including transportation and supply chain management. Instead of opening shops in Detroit and Matamoros, a corporation can choose to base the parent company in San Diego and the manufacturing in Tijuana.
Economic Advantages
The first and most obvious benefit is the financial gain that comes with establishing Maquiladora experts in Tijuana, as well as other border municipalities or states where they may be put. Once these industries are up and operating, they will supply residents with jobs while also helping to boost the local economy.
Experts in Tijuana say maquiladoras are a good way for Mexico's border cities to become more industrialized, even if unemployment remains high. Border cities and states benefit from the administrative facilities built on the US side, as well as the transportation and customs services provided by import-export activity.
Labor Availability
Border towns are infamous for having high unemployment rates and a significant number of individuals actively looking for work. Companies can gain access to a wider and more affordable labor pool by establishing Maquiladora experts in Tijuana, Mexico. Despite the fact that the majority of job seekers are unskilled, it gives employees with the possibility to rise to the skilled group.
Incentives and Costs
Having Maquiladora experts in Tijuana allows businesses to benefit from lower prices and tax breaks. Because labor costs in Mexico are comparatively low, production is more economical. This is because there is a larger labor pool that may be looking for work.
Tijuana maquiladora experts also aid corporations in lowering customs and fees. The 16 percent value-added tax (VAT) on raw materials used in manufacturing is waived for businesses.
Conclusion
In Tijuana, maquiladora professionals are mostly located in the Mexican border states of Baja California and Chihuahua. The majority of maquiladora experts in Tijuana, on the other hand, are based in Ciudad Juarez and Tijuana, Mexico.
The maquiladora program has no constraints on the items that can be assembled, packaged, processed, or produced. Weapons and radioactive products manufacturers, on the other hand, must obtain approval from the Secretary of Defense and the Mexican Nuclear Regulatory Authority, respectively.
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