What are the effects on the economies of the United States and Mexico?
In the United States, the maquila industry has allowed U.S. businesses to remain competitive with Asian (China, South Korea, Malaysia) companies offering the same goods for less. Without the maquila industry, many U.S. companies would have lost the battle against Asian imports and had to close. Instead, shifting production to Mexico allows U.S. companies to stay competitive and expand in other areas. For example, in the years since NAFTA went into affect, the U.S. auto industry has actually expanded employment in the United States, while also growing in Mexico.
