The difference between federalism and unitary states lies in the distribution of power. Federalism divides power between a central authority and regional governments, allowing multiple levels of governance to coexist, each with its own responsibilities and autonomy. In contrast, unitary states concentrate power in a central government that grants limited authority to local entities. Federal systems, like the U.S. and Canada, often allow for greater regional representation and adaptability, while unitary states can enable more uniform policy implementation, albeit at the potential cost of local representation.