In a federal system, the central (or federal) government has much more authority than in a confederal system. The central government controls more trade policy, and makes decisions about policy areas that involve interactions between states (such as highway systems).
Nationality is a legal relationship between an individual person and a state. Nationality affords the state jurisdiction over the person and affords the person the protection of the state. What these rights and duties are vary from state to state.
Nationality vs. Ethnicity. It is easy to confuse nationality and ethnicity, but there is a major difference between them. Nationality (noun) is the relationship between a person and the political state to which he belongs or is affiliated. Ethnicity (noun) is the identification of a person with a particular racial, cultural, or religious group. Here are a few examples that will demonstrate the difference between the two. 1. My nationality is Italian, but my ethnicity is Caucasian..