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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Joining NAFTA in 1994 was a significant leap for the Mexican economy, leading to increased trade and investment. The agreement opened up borders, allowing Mexican exports, particularly in agriculture and manufacturing, to flood markets in the U.S. and Canada. This surge in exports contributed to economic growth, job creation, and a boost in foreign direct investment that modernized industries in Mexico. However, the impact wasn't all sunshine and rainbows! While some sectors thrived, others, especially small farmers, struggled to compete against heavily subsidized U.S. agriculture. The influx of cheaper goods led to job losses in traditional sectors. Thus, while NAFTA spurred growth in some areas, it also highlighted the uneven benefits and challenges faced by different economic groups in Mexico.