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Federalism is exemplified in processes where power and authority are divided between national and state governments. For instance, in the United States, both levels can enact laws, regulate commerce, and collect taxes, allowing states to address local issues while the federal government handles national concerns. This division ensures a balance of power, enabling states to experiment with policies that reflect their unique needs and circumstances, while still adhering to overarching Federal Laws and standards. Such a system fosters cooperation and flexibility within a unified framework.

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