A federal system is a form of government where power is divided between a central authority and smaller political units, such as states or provinces. This structure allows both levels of government to operate independently in certain areas while sharing responsibilities in others. Countries like the United States and Canada use this system to balance local and national interests. In a federal system, the constitution typically outlines the powers granted to each level of government. This division helps prevent the concentration of power and allows for regional diversity, as local governments can address specific needs and preferences of their communities.