Final answer:
Deforestation in South America has a significant effect on wildlife habitats and leads to a decline in biodiversity.
Step-by-step explanation:
Deforestation in South America has a significant effect on wildlife habitats. The destruction of forests reduces the habitat critical to the survival of native species, leading to a decline in biodiversity. Tropical rainforests in the Amazon Basin are particularly affected, with large trees being cut down and the cleared areas used for cattle ranching until the soil becomes unviable, prompting further deforestation. This cycle of deforestation and habitat destruction poses a major threat to wildlife in South America.