When you start a game you can select teams. A team shares all research, diplomacy, war statuses, and some wonder effects all throughout the game. I don't know if a team can form or break up during a game currently - I suspect not. It is NOT the grouping that is formed when capitulation takes place.
A team CAN be form during a game (but not break up) as soon as you researched uhm... I think it was Communism or Fashism, something around this time. Than you can trade "Alliances" with a Civ and if that Civ accepts than you are a team like if you made it up since game start. You share wonder effects, research etc.
What I dislike on this system: You can only make up teams of 2 civs, not more. This should be changed I think. Also, the AI has often some unclear reasons why they won't team up with you. This also covers the only 2 civs per team issue I think. And teams should be possible to break up.
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