Final answer:
European mercantilism severely impacted Latin America during the sixteenth and seventeenth centuries by creating class disparities, exploiting labor through the Atlantic Slave Trade, and hindering local industrial growth due to an emphasis on exporting raw materials and importing European goods.
Step-by-step explanation:
Impact of European Mercantilism in Latin America::
During the sixteenth and seventeenth centuries, European mercantilism had profound effects on Latin America, reshaping the region's economy, society, and political frameworks. Mercantilism, which was the prevailing economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, led European nations, notably Spain and Portugal, to extract raw materials from their colonies including gold and silver, and restrict economic activities within Latin America to benefit the mother countries.
Mercantilism caused an increase in class divisions in Latin American societies as imported goods created vast wealth for plantation owners and urban professionals, while agricultural laborers could not afford factory-made products. Investments in industrial improvements were focused on sectors that could export raw materials back to Europe, thus leaving inadequate funds for local infrastructure development. Additionally, the region saw the rise of the Atlantic slave trade, as slaves were brought to work in cash crop plantations and mines, fueling the economies of their European overlords.
The system of mercantilism also had lasting impacts on Latin America's industrial capacity. After gaining independence, Latin American countries experienced economic difficulties due to the removal of protectionist policies and the influx of European and U.S. manufactured goods which outcompeted local industries. This led to the outflow of wealth and hindered the growth of domestic industries.
The involvement in regional conflicts, such as the War of the Triple Alliance, further destabilized the region and disrupted the path toward industrialization. The abuse of Indigenous populations and enslaved Africans were direct consequences of the mercantile policies, as they were seen as resources to be exploited for the benefit of European economies.