Dollar diplomacy is the trem used to refer the policy aimed at promoting the interests of the United States abroad by encouraging the investment of U.S. capital in foreign countries. Overall was to encourage and protect trade within Latin America and Asia. Particularly during President William Howard Taft's term the United States felt obligated, through the dollar diplomacy, to uphold economic and political stability of Venezuela, Cuba and Central America.
As a result of Taft's dollar diplomacy the United States not only gained financially from countries, but also restrained other foreign countries from reaping any sort of financial gain. Consequently, when the United States benefited from other countries, other world powers could not reap those same benefits.
