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There were many maquiladoras located in Mexican towns along the United States–Mexico Border , but they are now located in more areas all over Mexico. The main use of these assembly plants is to assemble imported parts. These businesses must work under the Maquila Decree , requiring all products to be exported from Mexico. Maquiladoras can be 100% foreign-owned (usually by U.S. companies). Using maquiladoras is an example of transnational operations.

The establishment of Maquila Decree was largely due to the end of the U.S. Bracero Program , which allowed Mexican immigrants to find temporary agricultural work in the United States. The end of the Bracero Program increased the unemployment rate in the border region. Mexican officials created the Maquila Decree in order to alleviate this problem.

The establishment of a Maquila Decree, was mainly due to efforts made by the Tijuana Maquila Association, to the Mexican Government in 1970. This action alleviated unemployment among a young population in need of work. It did not replace a non-existing Bracero Program. The hiring age for maquila workers was 16 years to 24 years of age.


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