Question

source 1
figure 10-7 the maquiladora zone
map of the united states and mexico, highlighting the maquiladora zone along the border
source 2
figure 10-9 advantages of maquiladoras for foreign - owned companies

working conditions and costs	advantages
work week	the standard work week in mexico is 48 hours, compared to 40 hours — or less — in the united states and canada.
costs	government programs keep start - up costs and the overall costs of making goods lower than in developed countries.
transportation	being close to markets in the u.s. keeps transportation costs low and allows goods to be moved by rail or road.

1. based on source 2, which of the following statements is true?

a. mexican workers in the maquiladora zone are able to earn more money than their american counterparts due to longer work - weeks
b. transnational corporations can increase their profits by investing in factories in the maquiladora zone
c. being close to the us border allows mexican companies to increase profits by flooding the american market with cheaply made goods
d. workers in developed countries can increase wages by working in maquiladoras on the weekends

Explanation:

• Option a: Source 2 states Mexican assembly-line wages are much lower than in developed countries; even with longer workweeks, they do not earn more than US workers, so this is false.
• Option b: Source 2 lists multiple cost advantages (lower wages, lower startup/production costs, low transportation costs) for foreign-owned companies in maquiladoras, which directly allows them to increase profits, so this is true.
• Option c: The source focuses on foreign-owned companies, not Mexican companies flooding the US market, so this is false.
• Option d: The source does not mention developed country workers working in maquiladoras for higher wages, so this is false.

Answer:

b. Transnational Corporations can increase their profits by investing in factories in the Maquiladora zone