This study reviews the industrialization process of the United States-Mexico Borderlands and the economic relations between the U.S. and Mexico and examines their impact on the borderlands. Main factor in the industrialization of the borderlands was the U.S. investment on the maquiladora program of Mexico since 1965. It contributed to the increase in employment and population of borderlands and the development of service industries. Low wage level of Mexico induced not only standardized labor-intensive industries but also the high-tech automated industries because they still use a lot of labor in manufacturing and assembly process, while the functions of management. R & D, and distribution remained in the U.S. This is a typical case of international division of labor and satellite industrial district. The rules of origin in NAFTA, however forced branch Plants of multinational companies to form the local linkages between firms.