system
Given the following post, respond as if you're commenting on Reddit:
human
[Naruto] So what exactly is the relation berween Ninja Villages and Nations?

They are basically autonomous city states right? Then what about the capital?
gpt
Theoretically, the Ninja Villages are subordinate to the country and the daimyō in charge being the main military force for their respective lands. It's supposed to be a mutual relationship with the country provide money, trade, goods to the village in return for supplying labor and military power. 

In practice, this tends to vary with the strength of the village vs the personal strength of the Kage vs the the personal strength of the daimyo. It can be an often antagonistic relationship where various parties are jockeying for power, money and control with the prize being the ability to make decisions in international relations. Which can be expected when you port your military power (the basis from which power in general flows) to a semi-autonomous city-state. 

We see this in Konoha where during the appointment of a Kage when Tsunade was absent, the daimyo was basically a puppet to the Konoha council and Danzo but during the Shippuden movies, he was much more powerful and commanding likely due to Tsunade being newer to the job. we also see this in Suna where the Wind Daimyō reduced funding for his village leading to an unprecedented crisis.