USA HISTORY

a form of American foreign policy to further its aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries.

(A) ** Dollar Diplomacy

(B) Big Stick Diplomacy

(C) Moral Diplomacy

(D) Open Door Policy

Concept note-1: -President Taft was more committed to the expansion of U.S. foreign trade than was Roosevelt. He pursued a program, known as “dollar diplomacy, ” designed to encourage U.S. investments in South and Central American, the Caribbean, and the Far East.

Concept note-2: -Dollar Diplomacy was meant to support the independence of Latin American countries from their European counterparts while also subtly, or blatantly, encouraging countries to take assistance from the United States.

Concept note-3: -Dollar diplomacy refers to the U.S. foreign policy created by President William Howard Taft and Secretary of State Philander C. Knox in 1912. Dollar Diplomacy sought to bolster the struggling economies of Latin American and East Asian countries while also expanding U.S. commercial interests in those regions.

Concept note-4: -In what became known as “dollar diplomacy, ” Taft announced his decision to “substitute dollars for bullets” in an effort to use foreign policy to secure markets and opportunities for American businessmen ([link]).