Dollar Diplomacy

Definition

Dollar diplomacy refers to a form of diplomacy initiated by U.S. President William Howard Taft and his secretary of state, Philander C. Knox, which aims at furthering its aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries.

Related terms

Open Door Policy: A term in foreign affairs initially used to refer to United States' policy established in late 19th century and early 20th century that would allow for a system international trade in China open to all countries equally.

Imperialism: A policy or ideology by which a nation extends its power by acquiring territories or establishing dominance over other nations either through direct territorial acquisition or through indirect methods of exerting control on the politics and/or economy.

Panama Canal: A man-made 51-mile (82 km) waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean, built for ship navigation in early 20th century.