Mexico is a federal presidential republic composed of 32 states. Its mixed economy is largely market-oriented and ranks among the largest emerging markets in the world. The country's economic strength comes from manufacturing (particularly automotive and electronics), tourism, remittances from abroad, oil production, and agriculture. Being part of NAFTA (now USMCA) with the US and Canada has made Mexico a major manufacturing hub, though there are significant regional economic disparities and challenges with informal economy sectors.