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Confederations tend to be established for dealing with critical issues, such as defense, foreign affairs, foreign trade, and a common currency, with the central government being required to provide support for all members. A confederation, in modern political terms, is usually limited to a permanent union of sovereign states for common action in relation to other states.[1]
The nature of the relationship between the entities constituting a confederation varies considerably. Likewise, the relationship between the member states and the central government, and the distribution of powers among them, is highly variable...
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