Which approach did Taft utilize to influence foreign nations through financial means?

The correct answer is Dollar Diplomacy. This policy, implemented by President William Howard Taft, aimed to influence foreign nations through economic means rather than military intervention. Taft believed that the United States could advance its interests and promote stability in Latin America and East Asia by encouraging American businesses to invest in those regions. The idea was that by providing financial assistance and fostering economic relationships, the U.S. could create stronger ties with other nations, thereby minimizing the chances of conflict and establishing a sense of American dominance in international affairs.

Dollar Diplomacy contrasted with other strategies, such as the Big Stick Policy, which relied on military strength to achieve foreign policy goals. Progressivism, while a significant domestic movement during Taft’s presidency, focused on social reform rather than foreign policy. The Roosevelt Corollary was an extension of the Monroe Doctrine that allowed for American intervention in Latin America but was not a financial approach. Hence, Dollar Diplomacy specifically highlights Taft’s unique strategy of leveraging economic influence as a tool for foreign relations.