Summary
A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governing status of the component states, as well as the division of power between them and the central government, is constitutionally entrenched and may not be altered by a unilateral decision, neither by the component states nor the federal political body. Alternatively, a federation is a form of government in which sovereign power is formally divided between a central authority and a number of constituent regions so that each region retains some degree of control over its internal affairs. It is often argued that federal states where the central government has overriding powers are not truly federal states. For example, such overriding powers may include: the constitutional authority to suspend a constituent state's government by invoking gross mismanagement or civil unrest, or to adopt national legislation that overrides or infringes on the constituent states' powers by invoking the central government's constitutional authority to ensure "peace and good government" or to implement obligations contracted under an international treaty. The governmental or constitutional structure found in a federation is considered to be federalist, or to be an example of federalism. It can be considered the opposite of another system, the unitary state. France, for example, has been unitary for many centuries. The Austrian Empire was a unitary state with crown lands, after the transformation into the Austria-Hungary monarchy the remaining crown lands of so-called Cisleithania became federated as Länder of the Republic of Austria through the implementation of its constitution. Germany, with its 16 states, or Länder, is an example of a federation. Federations are often multi-ethnic and cover a large area of territory (such as Russia, the United States, Canada, India, or Brazil), but neither is necessarily the case (such as Saint Kitts and Nevis or the Federated States of Micronesia).
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Federalism
Federalism is a mode of government that combines a general government (the central or "federal" government) with regional governments (provincial, state, cantonal, territorial, or other sub-unit governments) in a single political system, dividing the powers between the two. Federalism in the modern era was first adopted in the unions of states during the Old Swiss Confederacy. Federalism differs from confederalism, in which the general level of government is subordinate to the regional level, and from devolution within a unitary state, in which the regional level of government is subordinate to the general level.
Single market
A single market, sometimes called common market or internal market, is a type of trade bloc in which most trade barriers have been removed (for goods) with some common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members is as easy as within them. The physical (borders), technical (standards) and fiscal (taxes) barriers among the member states are removed to the maximum extent possible.
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America and consisting of 50 states, a federal district, five major unincorporated territories, nine Minor Outlying Islands, and 326 Indian reservations. It is the world's third-largest country by both land and total area. It shares land borders with Canada to its north and with Mexico to its south and has maritime borders with the Bahamas, Cuba, Russia, and other nations.
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