1. Suitable for Big Countries:
A federation is highly useful for a vast country having diversity of race, religion, language etc. It provides means where by small states can have for something all the advantages accruing from national unity and at the same time retain their separate entity and freedom to manage their own affairs as they like.
It is a boon for small states of the world which cannot maintain strong defence and sound economy.
2. Satisfaction of Local Needs:
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The government of the units in a federation understand the local needs and meet them effectively.
3. Division of Labour:
It relieves the central authorities of the pressure of work and thereby permits them to devote their attention to nation building activities. It is, thus, based on the principle of division of labour.
4. Training in Local Self- Government:
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It is a means to give people a training in the art of local self-government. It enables the local units to conduct experiments in legislation and administration without affecting the interests of the entire country.
5. Boon for small States:
Federation is the best device by which small states can preserve their dignity and escape foreign aggression.