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An example of independent, sovereign states grouped together is a federation or a confederation. A federation is a political entity in which a number of smaller states are united by a central government, with each state retaining its own government and sovereignty. A confederation is a political entity in which a number of states or regions come together for a common purpose, but each state or region maintains its own government and sovereignty, and the central government has limited power. Some examples of federations are United States, Canada, Australia, and Brazil. Some examples of confederation are Switzerland, European Union.