The concept of federalism affects the distribution of powers between state and national governments. In a federal system, authority is divided, allowing both levels of government to operate independently within their respective domains. This division can enhance local governance and accountability, as states can respond to regional needs and preferences. However, it may also lead to conflicts over jurisdiction, with overlapping responsibilities causing confusion. The balance maintained between state and national powers is significant for effective governance and impacts areas like law enforcement, education, and health policy, shaping the overall functionality of the political system.