Question

(MC)Which of the following U.S. actions characterizes the foreign policy of dollar diplomacy? financially backing the construction of the Panama Canal establishing a U.S. military presence in China refinancing Haiti’s national debt encouraging the flood of immigrants from Europe and Asia

Answer 1

Financially backing the construction of the Panama Canal and refinancing Haiti's national debt are both U.S. actions which characterizes the foreign policy of dollar diplomacy. Backing the construction of the Panama Canal would be one, because it seems as if the US government is wanting to do something advantageous for Panama, but it is actually benefiting the US, because Panama is obligated to put US interests first, since they are backing it. Refinancing Haiti's national debt is also an example of the foreign policy of dollar diplomacy, because Haiti will virtually owe them something and no other country can intervene, because the US holds a substantial amount of power in this situation.