Final answer:
Montevideo is located on the northeastern banks of the Rio de la Plata, an estuary of the Paraná and Uruguay Rivers. This cosmopolitan city is Uruguay's capital and the headquarters for Mercosur.
Step-by-step explanation:
Montevideo, the capital city of Uruguay, is located on the northeastern banks of the Rio de la Plata. The Rio de la Plata is an estuary formed by the confluence of the Paraná and Uruguay Rivers. While the Paraná River flows southward into the Rio de la Plata, between Argentina and Uruguay, the Uruguay River defines part of the border between these two countries.
Montevideo, with a population of 3.5 million people, which accounts for about 40 percent of the country's population, is a cosmopolitan city that is highly urbanized and known for its high-rise apartments and commercial buildings. Recognized as postindustrial and a well-developed country, Uruguay has also integrated itself into the global trade arena, with Montevideo being the headquarters for regional trade initiatives like Mercosur.