How has NAFTA affected the manufacturing sector in Mexico? Mexico has seen an increase in manufacturing jobs because many US companies have relocated there.
Mexico has seen a decrease in manufacturing jobs because many US companies are recruiting workers.
Mexico has experienced no difference in manufacturing jobs because the value of the peso is so low.
Mexico has experienced an up-and-down cycle in manufacturing jobs because of a global recession.

Mexico has seen an increase in manufacturing jobs because many US companies have relocated there.

Explanation:

NAFTA is the abbreviation of North American Free Trade Agreement. This agreement was signed by 3 countries: United States , Mexico, and Canada. It is created to create a trade blocs that make the flow of goods and products between these three countries became much easier. They eliminate majority of tariffs or quota that they usually imposed to other countries.

As a result, it became for Business entities in United States and Canada to open up their business in Mexico. The average labor cost in Mexico is lower compared to the other two. So, opening up factories in Mexico tend to lower their cost of operation. In return, Mexico benefited by the influx of job opportunities in the manufacturing sector that came from United States and Canada.