First, it determines the amount of bonuses the City-State provides and where it provides them. The amount of Envoys sent to a City-State determines many things. These Envoys can be used whenever and sent to whomever the parent civilization wants. When quests are completed, an Envoy is gained but it goes directly to the City-State(s) the quest was completed for. Quests are given upon meeting a City-State or upon the arrival of a new era. These quests are generally non-competitive and require a civilization to complete a certain task, such as discovering a eureka moment for a certain tech or defeating a nearby barbarian camp. When these points hit a limit, 1-3 Envoys are earned (based on which government is chosen) and can be sent to any City-State.
Influence points: (Not to be confused with the influece scale) Different tiers of governments add more or less amounts of influence points per turn.
