A party system refers to the way political parties are organized and interact within a political framework. It can be classified into different types, such as two-party systems, where two major parties dominate, or multi-party systems, where several parties compete for power. The structure of a party system influences how elections are conducted and how policies are formulated. In a two-party system, like that of the United States, two main parties typically alternate in power, shaping political discourse. In contrast, a multi-party system, seen in countries like Germany, allows for a broader representation of diverse interests, often leading to coalition governments. Each system has its advantages and challenges in governance and representation.