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The sharing of power between a central government and state governments is often defined by a federal system, where responsibilities and authorities are divided. Typically, the central government handles national defense, foreign affairs, and Immigration, while states manage local matters such as education, transportation, and law enforcement. This division can vary significantly based on the country's constitution and legal framework, allowing for flexibility in governance. Additionally, both levels may have concurrent powers, such as the ability to tax, which further defines their relationship.

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