What term best describes a government system where sovereignty is shared between the state and national government?

A federal system is characterized by the division of powers between different levels of government, specifically the national and state governments. In this system, sovereignty is constitutionally shared, allowing both levels to exercise authority over their respective jurisdictions. This means that both the national and state governments have the power to make laws, collect taxes, and regulate areas such as education and transportation, according to their own governing structures.

For example, in the United States, the Constitution outlines powers granted to the federal government while reserving many powers for the states. This division is essential for maintaining a balance of power and providing a framework for cooperation and conflict resolution between different levels of government. Federal systems are designed to enable local governance while still creating a unified national policy on broader issues, which is crucial for managing a diverse population across various regions.