Final answer:
The Confederation government faced challenges in diplomacy, with effectiveness varying due to the lack of enforcement of treaties and unstable commercial policies. British goods flooded U.S. markets in the 1780s.
Step-by-step explanation:
The Confederation government faced challenges in diplomacy, especially in relations with European powers, and its effectiveness varied. Under the Articles of Confederation, each state had the power to decide whether to comply with treaties made by the Congress, leading to a lack of enforcement. For example, both Great Britain and Spain refused to make commercial agreements with the United States due to doubts about enforcement. This lack of stable commercial policies made it difficult for American exporters to do business, and British goods flooded U.S. markets in the 1780s.