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.
Citizenship is the status of a person recognized under the custom or law as being a member of a state. person can be a citizen for several reasons. Usually citizenship of the place of birth is automatic; in other cases an application may be required. 1  Parents are citizens (jus sanguinis).