Final answer:
The United States-Mexico-Canada Agreement (USMCA), formerly known as NAFTA, had both positive and negative effects on the Mexican economy. The rise of Mexican maquiladoras and increased trade were significant impacts, but it also led to unemployment in Mexico and increased illegal immigration.
Step-by-step explanation:
NAFTA, which is now called the United States-Mexico-Canada Agreement (USMCA), had various effects on the Mexican economy. One of the significant impacts was the rise of Mexican factories known as maquiladoras, located near the U.S. border, which produced goods for the U.S. market. Maquiladora employment nearly doubled in the five years after NAFTA's implementation. Additionally, the agreement increased the flow of goods and capital across the U.S.-Mexico border, but it also led to increased unemployment in Mexico and greater amounts of illegal immigration motivated by the search for work.