Answer:
A system in which power is divided between the national and state governments. Significance: Federalism allows people living in different states with different needs and different interests to set policies suited to the people in their state.Federalism is a system of government in which the same territory is controlled by two levels of government. Generally, an overarching national government is responsible for broader governance of larger territorial areas, while the smaller subdivisions, states, and cities govern the issues of local concern.