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It refers to Central & South America. It has nothing whatsoever to do with Latin as a language.

EDIT by jaysjay.

It is not in itself Latin, but it refers to those countries, basically colonised by the Mediterranean region countries which speak the languages described by the term Latin, which include French, Italian, Spanish and Portuguese.

As the general languages of South America are Spanish and Portuguese, the area is called Latin America.

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Q: What does the phrase Latin America mean?
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