(A) ** It increased U.S. involvement in the affairs of Central America.
(B) It led to the democratization of South America.
(C) It reduced trade relations between the US and Central America.
(D) It helped European countires to colonize much of South America.
EXPLANATIONS BELOW
Concept note-1: -The Panama Canal’s greatest benefit was its effect on transportation between the east and west coasts of the U.S. The main benefit for Panama of canal construction was the introduction of new healthcare technologies.
Concept note-2: -The Hay-Pauncefote Treaty of 1901 abrogated the earlier Clayton-Bulwer Treaty and licensed the United States to build and manage its own canal. Following heated debate over the location of the proposed canal, on June 19, 1902, the U.S. Senate voted in favor of building the canal through Panama.
Concept note-3: -Americans knew they needed this to move ships from east to west quickly. If they did that, they would control power because they would control the oceans. The Canal was a geopolitical strategy to make the United States the most powerful nation on earth. Also, the economic impact was massive.