What Was the Primary Purpose of the Maquiladora Program

question 57

Multiple Choice

What was the primary purpose of the maquiladora program?

• A) It was an initiative launched by the Johnson administration to increase jobs on the Texas side of the border and ease trade with Mexico.
• B) It was an idea of the Texas state legislature, which was later adopted by neighboring states in Mexico, aimed at improving border control efficiency.
• C) It was an initiative launched by the Mexican government with American support to boost employment and industrial development.
• D) It was a pilot program used to test the viability of future joint economic endeavors between the U.S. and Mexico, specifically NAFTA.
• E) The purpose of this program was to create a free trade zone in the border region between Mexico and the United States.

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Definitions:

Favorable Variances

Differences between actual and budgeted financial performance that result in a better-than-expected financial position.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful tool for performance evaluation.

Variable Costs

Costs that vary directly with the level of production or business activity. Examples include raw materials, packaging, and direct labor.

Fixed Costs

Fixed Costs are business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and loan payments.