A party system refers to the way political parties are organized and interact within a political framework. It typically describes the number of parties that compete for power and the nature of their relationships. Common types include two-party systems, where two major parties dominate, and multi-party systems, where several parties hold significant influence. Party systems can shape governance and policy-making. In a two-party system, like that of the United States, one party often holds a majority, making it easier to pass legislation. In contrast, a multi-party system, such as in Germany, may require coalitions, leading to more diverse representation but potentially slower decision-making.