How do Mexico's land-forms and climates affect it's economy?

Answer 1

Location and climate define the economic activities that can be performed, and indirectly affect the society and Demographics. Northern areas are dominated by the Sonoran and Chihuahuan deserts, so the main economic activities include manufacturing, mining and livestock raising; southern latitudes are warmer and moister, so agriculture and tourism are paramount. Central Mexico has high altitudes and rich volcanic soils, which have resulted in strong agriculture, high population densities and since the last century or so, a strong manufacturing base.

Answer 2

The economy of Mexico has been helped or hindered by climate. For example, the Chihuahuan desert is the result of a 'rain shadow' effect 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.