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- Confederation
Union of sovereign states linked by treaties, whose common government does not directly exercise its sovereignty over their territory
A confederation (also known as a confederacy or league) is a political union of sovereign states united for purposes of common action. Usually created by a treaty, confederations of states tend to be established for dealing with critical issues, such as defence, foreign relations, internal trade or currency, with the central government being required to provide support for all its members. Wikipedia
