Federal Government
1. Powers are distributed between the centre and the units.
2. Both the centre and the units have separate government.
3. It must have a written and rigid constitution.
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4. A special federal judiciary should be there to interpret the constitution.
Demerits
1. It is inefficient because of diversity of law and administration.
2. There is always a tug-of- war between national and local interests.
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3. It is highly expensive.
Merits
l.It is suitable for countries having a diversity of race, religion and language.
2. Local needs are met with effectively.
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3. Responsibilities of the central government are lessened.
4. People get training in the art of self-government.
5. Small states can have dignity and be safe from foreign aggression.