Final answer:
Changes in the U.S. economy affect Puerto Rico primarily because its economy is closely tied to the United States via investment by American firms, the use of the U.S. dollar, and the tourism industry. Economic shifts in the U.S. influence employment, industrial production, and remittance flows in Puerto Rico.
Step-by-step explanation:
Changes in the U.S. economy affect Puerto Rico because it has a dynamic economy that is heavily intertwined with that of the United States. Puerto Rico's economy is influenced by various factors such as U.S. tax incentives and duty-free access which encourage American firms to invest on the island. Additionally, the use of the U.S. dollar as Puerto Rico's currency binds its economic well-being closely to the monetary policy and fiscal health of the United States.
Since a significant portion of Puerto Rico's industrial sector is composed of U.S. firms, changes in the U.S. economy can directly impact employment and industrial production on the island. Likewise, as Puerto Ricans are U.S. citizens and can freely move and work within the United States, economic shifts in the U.S. can influence migration patterns and remittances, which are crucial for the island's economy. Puerto Rico's reliance on tourism, with the United States being a major source of tourists, further compounds the effect of U.S. economic changes on the island's economy.