Federalism impacts the distribution of power within a country by dividing authority between national and subnational (state or local) governments. This system allows different levels of government to exercise their powers independently, facilitating a balance of authority and responsibility. Federalism encourages diversity in governance, enabling states to tailor policies to local needs while still adhering to national standards. The interconnectedness fosters collaboration and conflict resolution, providing mechanisms for accountability while enhancing democratic unity across various regions of a nation.