Answer:
Created debts in Central America, years of economic instability, resentment of American’s interference, heightened tensions between Japan and the US.
Explanation:
William Taft was a former President of the US, he had a foreign policy that was committed to the expansion of U.S foreign trade. He pursued a program that was called “dollar diplomacy” that encouraged US investments in South and Central America, the Caribbean and the Far East.
He used government officials to promote American products in those places, especially industrial goods and military hardware.
This forced Latin American nations to become dependent on the dollar to prevent any European intervention. The US shaped Latin American economy to be better suited to the US trade and business interests.
In Honduras, the US established financial control by buying all national debt and made the country dependent on US dollar when Honduras did not agree with that the US sponsored a revolution which installed a pro-US regime that accepted the Dollar Diplomacy.
In Nicaragua the government also refused the Dollar Diplomacy, the US also sponsored a revolution, many private US companies and banks controlled Nicaraguan banks and railroads which made the country to cooperate.
It also influenced China because the US invested in the railway network, which caused many problems with Japan and Russia.
