What role does maquiladora play in the development of a country? Why is this
phenomenon seen as a new phase in capitalist development? Is this a reasonable claim? The
role that the maquila plays in the development of a country is an interesting topic to discuss. To
understand the role that maquiladoras play, one must first gain an understanding of the original
purpose of the maquila. Then, by studying the evolution of the maquiladora to a big
manufacturing base, one may have a better understanding of how this type of firm may lead to
the development of the host country. In the first section, I will discuss the origination and
development of the maquiladoras. In section two, I will provide the opinions of some
economists and their insights as to how the maquiladora has affected developing countries. The
third section deals with capitalism and how maquiladoras play a role in the development of a
capitalist economy. In section four, I will discuss my opinions on the arguments that I have
presented. The final section will include some concluding remarks. Now, let us familiarize
The word "maquiladora" is derived from the Spanish verb "maquilar", which means to
mill wheat into flour. Farmers would mill wheat into portions and then give a portion to the
miller; this portion was called a maquila. As time passed, the word maquila became associated
with manufacturing, assembly and packaging processes that were carried out by someone that
was not the original manufacturer. In today's economic world, the word "maquiladora" stands
for a special type of company in Mexico (Maquila Overview 1). The component that makes the
maquiladora different from any other manufacturing plant is that they are allowed to import raw
materials, equipment, and parts needed for assembly, and export the finished good to the United
States on a duty free basis (Maquilas 1).
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