Federalism refers to how power is distributed between which entities?

The concept of federalism primarily refers to the distribution of power between national and state governments. In a federal system, authority is divided such that the national government has its own powers, while state governments also possess their own distinct powers. This division allows for a level of sovereignty at both levels, enabling them to operate independently within their respective spheres and share certain powers, enhancing democratic governance and local autonomy.

The relationship and balance of power between the national and state governments are central to understanding federalism, as this structure allows for a diversity of laws and governance methods across different states while maintaining a cohesive national policy where necessary. This dual system is considered essential for accommodating the varied needs and preferences of different regions within a nation.