Final answer:
Uruguay is named after its likeness to Venice because of the canals and waterways in the city of Montevideo.
Step-by-step explanation:
The South American country named after its likeness to Venice is Uruguay.
The city of Montevideo in Uruguay is often compared to Venice due to its many canals and waterways. This has led to the country being named after its resemblance to Venice.
For example, Montevideo is the location of the headquarters for Mercosur, a trade alliance among South American countries, which includes Uruguay, Brazil, Argentina, and Paraguay as members. Additionally, Uruguay shares a border with Brazil and Argentina, further emphasizing its location in the region.