The maquiladora industry has been designed as a win-win strategic economic platform for foreign companies and Mexican workers. The primary benefactor U.S. company that was cheaper through the use of highly productive, lower cost Mexican workers. However, the direct link between the U.S. economy and the appropriate use of Mexican workers has resulted in staff reductions in unpredictable growth cycles. While the globalization of trade has increased dramatically, the maquiladoras ha … Read more »

The maquiladora industry has been designed as a win-win strategic economic platform for foreign companies and Mexican workers. The primary benefactor U.S. company that was cheaper through the use of highly productive, lower cost Mexican workers. However, the direct link between the U.S. economy and the appropriate use of Mexican workers has resulted in staff reductions in unpredictable growth cycles. While the globalization of trade has increased dramatically, the maquiladoras have been slow to adapt to new realities commerce, including the rise of China as a global manufacturing power. The more intense global competition and the recent financial crisis have provided Mexico’s structural deficits and the maquiladora model with its focus on low-cost labor in question. Can the maquiladoras remain viable in this seemingly unpredictable economic environment? In this article, we will provide a brief history of the maquiladoras, discuss the new foreign trade environmental realities and offer six strategies that transform the maquiladoras in a sustainable economic model in future.
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from
John Hardjimarcou,
Lance E. Brouthers,
Jason P. McNicol,
Donald E. Michie
Source: Business Horizons
11 pages.
Release Date: 15, March 2013. Prod #: BH522-PDF-ENG
Maquiladoras in 21 Century: Six Strategies for Success HBR case solution

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