Final answer:
The term 'mestizo' is used in Latin America to describe people of mixed Indigenous and European, mainly Spanish, ancestry. While 'Latino' is more commonly used in the U.S. to refer to people of Latin American heritage broadly, it is not synonymous with 'mestizo', which specifically denotes mixed heritage.
Step-by-step explanation:
The Latin American term for indigenous people who have "mixed" with the dominant group is mestizo. This term historically refers to individuals of combined European (especially Spanish) and Native American ancestry. In the centuries of colonial rule, social hierarchies were created to maintain the power of the European settlers and their descendants, who created a caste system where 'mestizos' held a distinct position, which was below the Europeans but above the enslaved Africans and Indigenous populations. Over time, mestizos often occupied urban areas and diverse economic roles from artisans to lower military ranks, shaping the social and cultural landscapes of Latin America.
In contemporary usage, especially in the United States, the term Latino has gained currency to describe people with Latin American heritage more generally, but it's important to note that 'Latino' is not an exact synonym for 'mestizo'. 'Latino' encompasses a broader and more diverse population including those with no indigenous heritage, which is why 'mestizo' remains an important term for referring specifically to mixed Indigenous and European ancestry.