Question

From the following, select the events that led to the unequal division of social structure in Latin America.

• A. European administrative control
• B. Trade profited Europeans alone
• C. Profit from trade spent on luxury by local elites.
• D. Development of indigenous industries

Answer 1

Answer: (A), (B), (C)

Profit from trade spent on luxury by local elites.

The administration of Latin America was controlled by the mother countries in Europe and the church. The Latin American colonies were forced to cultivate commercial crops. They were not allowed to develop industries and trade with other countries. The profits from these sales went to the local elites who used it all for luxury. This development only benefited the Europeans; doors to internal development of the colonies were closed.