what she says: i'm fine

what she means: if in shrek 2, fiona's parents are the king and queen of the land, how come lord farquad has the governmental power in the first movie? surely when you think about it, the kingdom of far far away, shrek's swamp, lord farquad's city, and fiona's tower are all within walking distance - shrek and donkey make it from the swamp to the castle to fiona's tower in a matter of days, all on foot, so it is a small area of land we're talking about. so who is this lord farquad, and does he have any relation to the king and queen? was his and fiona's wedding incest?? or was he doing something illegal unbeknownst to the kingdom?? is lord farquad's city of Duloc it's own country, much like the vatican is of italy?? does shrek's swamp fall into duloc, or the kingdoms territory? was Lord Farquad illegally using the land when he dumped the fairytale creatures there??? who creates these legislative policies??? is there a governmental force bigger than both the kingdom and duloc???? how many layers does lord farquad have?????