Federalism is a limited form of government in which limited power is present with the federal or center over the states while the state government has the power to regulate and check and balance inside the state boundaries.The federal government can not interfere inside the state. This type of government is present in many countries such as USA, Mexico, Russia, India, Brazil, Canada, Switzerland, Argentina, Nigeria, and Australia etc.
The exchange that most affected the indigenous people was the one of diseases. Native Americans hadn't encounter the diseases the European brought before, so they hadn't develop immunity to them. This is the major reason of the large death of Native Americans, besides the war between them and the brutality of the Europeans.