USA HISTORY

Detailed explanation-1: -Dollar Diplomacy, foreign policy created by U.S. Pres. William Howard Taft (served 1909–13) and his secretary of state, Philander C. Knox, to ensure the financial stability of a region while protecting and extending U.S. commercial and financial interests there.

Detailed explanation-2: -From 1909 to 1913, President William Howard Taft and Secretary of State Philander C. Knox followed a foreign policy characterized as “dollar diplomacy.”

Detailed explanation-3: -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]).

Detailed explanation-4: -The effect of President Taft’s use of the dollar diplomacy in Nicaragua was the following; It angered the people in Latin America. The Dollar Diplomacy was the foreign policy by President Tuft which had the aim to involve in Latin America and East Asia. Though this policy they gave loans and gained an upper hand.