Final answer:
The statement is true; the Articles of Confederation resulted in a weak central government unable to regulate trade or enforce treaties, leading to poor commercial relations and respect from European governments.
Step-by-step explanation:
The statement regarding the Articles of Confederation and its impact on trade and foreign relations of the United States is true. The Articles of Confederation provided a very weak central government, which did not have the authority to regulate trade or enforce treaties. This resulted in fragmented commercial policies, and as a consequence, European powers like Great Britain and Spain were reluctant to enter into commercial agreements with the U.S., doubting their enforcement. Without a unified and strong approach to trade, American exporters struggled, leading to British goods flooding the U.S. markets, a scenario reminiscent of pre-Revolutionary War times.
This period was labeled as "critical" because of the limited progress the U.S. made under the Articles. The Confederation Congress was nearly powerless to resolve public finance issues and could not effectively manage defense due to their inability to raise an army or levy taxes, relying instead on the states for such provisions. Thus, the call for a new government, culminating in the Constitutional Convention of 1787, was in part a response to the trade and diplomatic difficulties faced under the Articles of Confederation.