Which statement about U.S. Dollar Diplomacy in Latin America is true?A.U.S. military force was never necessary.B.Dollar Diplomacy in Latin America was not effective.C.It went along with American military action.D.U.S. businesses had no power in Latin America.
Question
Which statement about U.S. Dollar Diplomacy in Latin America is true?A.U.S. military force was never necessary.B.Dollar Diplomacy in Latin America was not effective.C.It went along with American military action.D.U.S. businesses had no power in Latin America.
Solution
The correct statement about U.S. Dollar Diplomacy in Latin America is C. It went along with American military action.
Here's a brief explanation:
Dollar Diplomacy was a form of American foreign policy to further its aims in Latin America and East Asia through use of its economic power by guaranteeing loans made to foreign countries. The term was originally coined by President Taft and Secretary of State Philander C. Knox.
While the aim was to avoid military intervention and foster a more peaceful and diplomatic relationship, in practice, the policy often led to U.S. involvement in several military interventions, particularly in Central America and the Caribbean. Therefore, statement C is true.
Statement A is false because, as mentioned, military force was sometimes used in conjunction with Dollar Diplomacy. Statement B is subjective and depends on what one defines as "effective", but it's generally agreed that the policy had mixed results at best. Statement D is also false, as U.S. businesses often had significant power and influence in Latin America during this period, in part due to the policies of Dollar Diplomacy.
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