One effect of the encomienda system in Latin

America was that it

(1) eliminated the use of guilds

(2) promoted isolationism

(3) exploited indigenous peoples

(4) reduced Spanish influence

The correct answer is 3) exploited indigenous peoples.

The econmienda system was used by the Spanish in their colonization efforts of the New World. This labor system revolved around land being given to Spanish colonizers. These colonizers would then be given a group of indigenous people to work on their land. Besides providing them with shelter, the people who owned the land were supposed to convert the Natives to Christianity.

Despite the good intentions of this system it backfired mightly, as Spanish land owners treated indigenous people poorly. This system was close to a type of slavery in which the indigenous people had almost no political or legal power.

Answer: Exploited indigenous people.

Explanation: Encomienda is a Spanish word meaning "commission." It was a theory or you can say a system that was used by Spanish people. We are talking about the time when the new world which is United States of America today was once a group of colonies made by England and European countries. In Spain it was a very famous custom that whoever will conquer the land acquired by Spain in the new world will be awarded with a colony there. Most of the Spaniards went there and made their colonies and this entire thing proved disastrous to the native population. They miss-treated the native population and brought along them different European diseases which had no immunity at that time and because of which most of the native people died. Thus, we can say that one of the very major effect of this system in Latin America was that it exploited the indigenous people in Latin America.