Iceland is an island nation located in Northern Europe between the Greenland Sea and the Northern Atlantic Ocean. It is northwest of the United Kingdom and has a strategic location between Greenland and Europe. Iceland is volcanically and geologically active with hot springs, geysers, and icefields. The government system is a constitutional republic; the chief of state is the president, and the head of government is the prime minister. Iceland has a Scandinavian-type social-market economy that combines a capitalist structure and free-market principles with an extensive welfare system. Iceland is a member of the European Free Trade Association (EFTA).
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