The term for a government system in which power is divided between a central authority and constituent political units is known as federalism. In federal systems, both levels of government have specific powers and responsibilities outlined in a constitution, allowing for a division of governance that can accommodate diverse interests and regional differences. Countries like the United States, Canada, and Germany are examples of federal states. This division promotes a balance of power, ensuring that local governments can cater to regional needs while the central government manages national issues.