Commonwealths are basically a group of loosly gatherned nations who work together, and in doing so ignor foreign taxes when dealign with other nations.
Technically under a commonwealth there is usually one head official who has little to no power in any territory but the "mother country" some issues that rise are the questions of government, who owns who and to what extent? Does the mother country have rights to enact laws abroad, go to war using its colonial soldiers?
today the best example is Great Britain's Commonwealth. It is broken into two circles, the Inner and Outer circle. The inner circle and outer both follow English laws and traditions, such as driving on the left, using/not using taxes on each other. The Inner circle is headed (legally) by the King or Queen of England (the mother country). Technically when Queen Elizabeth II of England sets foot on Canada, she there becomes Queen Elizabeth II of Canada. Inner members use a variation of the british pounds, go to war with the mother country. Inner members include Canada, Australia, New Zealand, Antigua and Barbuda, Jamaica, South Africa and others.
Outer Circle members also follow traditions of Britain, but do not necessarily speak English or hold true to the dictates of the Queen. They also are not legally tied to England but choose to remain in close relations rather then legal ones so they may leave the commonwealth if they choose. These include foreign territories like India, Kenya, Suriname, Zimbabwe, and others.
If the queen wished to, she could legally dismiss the governments of the Inner Commonwealth territories and thus return them to Colonial status under England. The power was enabled to combat trying times such as war, famine etc when more direct power and control may be needed on a central global effort. But as we know Canada, Australia, England all have differing laws, and organizations so the control of te English Commonwealth is not overly bearing.
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