Describe the cross-border economy between the United States and Mexico
The cross border economy is basically developed as a result of where you have a 1st World Country-- the United States, touching a 3rd World Country—Mexico, with a common easily crossable border. To attract U.S. companies into a very labor intensive manufacturing industry in Mexico, Mexico agreed for the most part that they could import equipment and materials duty free, and that they could export their products outside Mexico back into the United States. Thus, we saw a large number of manufacturing companies that moved into the area in order to take advantage of low cost labor. The transportation costs could be minimized.
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In the diagram below, the left arrow represents
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