USA HISTORY

Detailed explanation-1: -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-2: -Dollar diplomacy is the term applied to American foreign policy under President William Howard Taft and his secretary of state, Philander C. Knox, to ensure the financial stability of Latin American and East Asian countries, while also expanding U.S. commercial interests in those regions.

Detailed explanation-3: -Dollar Diplomacy, 1909–1913 Taft shared the view held by Knox, a corporate lawyer who had founded the giant conglomerate U.S. Steel, that the goal of diplomacy was to create stability and order abroad that would best promote American commercial interests.

Detailed explanation-4: -Definition of ‘dollar diplomacy’ 1. the policy of using the economic power or influence of a government to promote and protect in other countries the business interests of its private citizens, corporations, etc. 2. the use of economic power by a country to further foreign policy goals.