- Federalism is characterized by dual polity (two levels of government) and division of powers. - Shared rule involves institutions and processes for common policy-making (e.g., central government, federal legislature). - Self-rule involves regional governments having autonomous authority in their defined spheres (e.g., state governments). - Federations are not static; they undergo changes due to political pressures, social movements, and economic shifts, leading to shifts in power balance (e.g., centralization or decentralization trends).