A maquiladora is a manufacturing plant located in Mexico, often near the border with the United States. These factories assemble products for export, primarily to the U.S. market. They benefit from lower labor costs and favorable trade agreements, allowing companies to produce goods more economically. Typically, maquiladoras import raw materials and components duty-free, assemble them, and then export the finished products. This system has created numerous jobs in Mexico, contributing to the local economy. However, it has also raised concerns about labor conditions and environmental impacts in the region.