Maquila, economic reform and corporate strategies

Corporate strategies in maquila have changed over time. While they were originally geared only to the exploitation of low-paid, low-skilled labor, nowadays firms are upgrading human capital and increasing the scope and technological complexity of production processes. The adoption of the New Economic Model in host countries aimed precisely at this type of strategy change, but cannot solely be credited for it. In addition, policies regarding maquila under the NEM did not achieve all the stated goals regarding corporate strategy change: trends in local procurement and technology transfer are still unsatisfactory. Strengthening of local supply and absorption capabilities is required. (C) 2000 Elsevier Science Ltd. All rights reserved.