Question

• In the colonial era, had limited Latin American trade and economic development.

Answer 1

In the colonial era, **mercantilism** had limited Latin American trade and economic development. This economic theory emphasized that colonies existed primarily to benefit the mother country by providing raw materials and serving as markets for manufactured goods. Consequently, colonial powers restricted trade to prevent competition and ensure that economic benefits flowed back to Europe, hindering the growth of independent local economies in Latin America.