Question

What economic and political conditions had to exist for Taft's "dollar diplomacy" to be effective?

Answer 1

Answer:

Dollar diplomacy helped the American government in gaining finances from other countries. However, it had restrictions on countries from reaping financial gain. When America had benefited from diverse countries, other countries had no right to reaping the same benefits.

Dollar diplomacy was not a new idea. However, it was used in promoting commercial interest from the past years. The estet department, however, was very active in supporting and encouraging the industrialist and bankers to secure the new opportunities.