Magnetism affects watches differently based on their type. Mechanical watches can have their ferrous parts magnetized, leading to performance issues, while quartz watches are generally resistant due to their lack of moving mechanical parts. The Earth's magnetic field does not significantly impact watches because the strength is much lower than that of a magnet used in testing. Mechanical watches often include magnetic shielding to protect against magnetic fields, but if they do become magnetized, a watchmaker can demagnetize them. Overall, while quartz watches are less affected, mechanical watches can experience significant timing inaccuracies when exposed to strong magnetic fields.