Late-model 4WD systems have the ability to switch between 2WD and 4WD and back, without driver involvement. Normally an electromagnetic clutch in the transfer case controls the torque split between the front and rear axles. The clutch is controlled by a computer or control module in the vehicle. The driver can also select a desired operational mode.
AWD are basically the same as 4WD systems, except there is no low-gear option. They may not have a separate transfer case; rather, a viscous clutch, center differential, or transfer clutch is used to transfer power from the transaxle to a rear driveline and rear axle assembly.