What is a maquiladora and in which country are they common?

• A. A border-zone factory that imports finished goods and exports raw materials.
• B. A border-zone factory that imports raw materials duty-free and exports finished goods.
• C. A domestic factory with no cross-border trade.
• D. A service center for logistics.

Answer: (B)

Maquiladoras are border-zone factories that bring in raw materials and components duty-free for processing, and then export the finished goods back across the border. They’re especially common in Mexico along the United States border, where firms leverage cheaper labor and proximity to the U.S. market. This setup—importing raw materials without paying duties and exporting finished products—is what makes the description a maquiladora. The other options describe importing finished goods, or domestic or purely service-focused facilities, which don’t fit the cross-border manufacturing and export pattern.