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These 2 forms of territorial system differ in terms of independence and autonomy of their constituent parts.

In a confederation the countries remain independent, though centralized executive and legislative bodies may be established. The counties unite as a rule in the political sphere, especially in the field of foreign policy. Though integration may be deeper. A good example of confederation is Switzerland.

A federation in a one country, divided into several parts (i.e., states) with some autonomous rights. Executive, legislative bodies and courts are established both on federal and state level. But these states are not independent.
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