Taft maintained an activist approach to foreign policy. On one hand, he was the initiator of what became known as dollar diplomacy, in which the United States used its military might to promote American business interests abroad. Taft, defended his dollar diplomacy as an extension of the Monroe Doctrine. Taft was a major supporter of arbitration as the most viable method of settling international disputes. Quickly becoming a world power, America sought to further her influence abroad. President Taft realized that by instituting dollar diplomacy, it would be pernicious to the financial gain of other countries. Thus the United States would benefit greatly.