federation

Political entity made up from a number of smaller units or states where the central government has powers over national issues such as foreign policy and defence, while the individual states retain a high degree of regional and local autonomy. A federation should be distinguished from a confederation, a looser union of states for mutual assistance. Contemporary examples of federated states established since 1750 include the USA, Canada, Australia, India, the Federal Republic of Germany, Malaysia, and Micronesia.