Question

How does Mexico's geography affect its economy?

Answer 1

The economy of Mexico has been helped or hindered by geography. For example, thanks to the Sierra Madre mountain ranges, Mexico is one of the richest countries in terms of mineral resources such as silver, mine lead or sulfur. The lowlands along the gulf of Mexico have been a warm sea for millions of years so this region is rich in oil and natural gas. 

Geography also affects weather patterns, specially on the northern regions of Mexico. For example, the Chihuahuan desert is the result of a 'rain shadow' induced by the Sierra Madre Occidental. This has limited agriculture to small fertile pockets within Mexico, which cover only 12-17% of Mexico's territory. 

Finally, geography makes some productive activities more difficult, thus increasing costs. For example, most of Mexico is quite hilly, preventing an extensive railroad network from ever developing; such network would ease movement from and to shipping ports, cutting transportation costs.