Polo Ralph Lauren, Tommy Hilfiger, and Wrangler manufacture jeans at plants in Mexico, thanks to the inexpensive labor there and various tax breaks from the Mexican government. These companies are

Question

A. repatriating.
B. using maquiladoras.
C. countertrading.
D. franchising.
E. licensing.

Answer 1

B. using maquiladoras.

American companies have found it cheaper to do their manufacturing outside the United States. For example, the rationale for using maquiladoras, which are manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens, is that they provide less expensive labor for assembling many types of manufactured goods.