How did joining NAFTA affect the Mexican economy? It had little effect on the economy. It caused stopped economy to deconomic downturns. It helped improve the economy.

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1. **Identification of NAFTA’s Impact:**  
   Joining NAFTA, which stands for the North American Free Trade Agreement, primarily aimed to increase trade and investment among the United States, Canada, and Mexico.

2. **Economic Improvements Observed:**  
   - **Increased Trade and Exports:**  
     NAFTA facilitated an exponential increase in trade, leading to a rise in Mexican exports. This is often seen in the formula for trade balance:  
     $$
     \text{Trade Balance} = \text{Exports} - \text{Imports}
     $$
     With higher exports, the overall balance improved.
   - **Foreign Direct Investment (FDI) Growth:**  
     The agreement led to a surge in foreign direct investment, which contributed to job creation and improved industrial output.
   - **Manufacturing Expansion:**  
     The manufacturing sector in Mexico grew due to improved supply chains and greater integration with other NAFTA economies.

3. **Conclusion:**  
   Based on these improvements, the effect of NAFTA on the Mexican economy was positive. Thus, among the given options, the correct statement is:  
   **It helped improve the economy.**
NAFTA helped improve the Mexican economy by increasing trade, attracting investment, and boosting manufacturing.

How did joining NAFTA affect the Mexican economy? It had little effect on the economy. It caused stopped economy to deconomic downturns. It helped improve the economy.

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