Final answer:
EPZs, or Export Processing Zones, emerged in Mexico as a response to NAFTA. These zones provided a favorable environment for companies to set up factories and benefit from factors such as cheap labor and proximity to the US consumer market.
Step-by-step explanation:
EPZs, or Export Processing Zones, emerged in Mexico as a response to the North American Free Trade Agreement (NAFTA). NAFTA allowed for agricultural products to move freely between the United States, Mexico, and Canada without tariffs, which led to increased competition for Mexican farmers. EPZs were established as special areas where companies could set up factories and benefit from cheap labor, accessible raw materials, and proximity to the US consumer market. This attracted foreign investment and helped boost Mexico's industrial activity.