Kosovo is a disputed territory in Southeast Europe in the Balkans. It is landlocked and borders Albania, Macedonia, Montenegro, and Serbia. Most of Kosovo's terrain in mountainous. The government system is a republic. The chief of state is the president, and the head of government is the prime minister. Kosovo has transitioned to a market economy in which the prices of goods and services are determined in a free price system. Kosovo is a member of the Central European Free Trade Agreement (CEFTA).