Glossary: twin plant
DEFINITION:
Productive arrangements whereby two or more producers in separate countries complementarily share the production of a good or service. Under the Caribbean Basin Initiative (CBI), such arrangements with the government of Puerto Rico potentially benefited from special investment or 936 funds (q.v.). The operations of twin plant ventures typically entailed the delegation of assembly or other labor-intensive production stages to plants in a CBI-designated country, from which these semi-finished products would then be shipped duty-free to Puerto Rico for final processing.