Situated in the South Atlantic Ocean, over 12,000 km (7440 miles) from Britain, the Falkland Islands are influenced by the cold Antarctic current. The main islands of East and West Falkland and the hundreds of outlying islands have a cool, temperate climate with frequent strong winds.

The islands gained international attention with the Argentine invasion, and subsequent British recapture, in 1982. Since then, the British government has invested heavily in a "Fortress Falklands" policy. A new runway and a military base to house an enlarged garrison were built at Mount Pleasant. The islanders, for their part, are determined to maintain the political status quo, but in 1999 improving relations led to the restoration of scheduled air connections with Argentina. Since the Falklands War, the economy of the islands has prospered. Falklanders invested heavily in schools, roads, and tourism in a fresh drive for a strong identity. By 1987, the Falklands had become financially solvent through the sale of fishing licenses. Although sales of cheaper, less restrictive licenses by Argentina caused a fall in fishing revenues, fishing (mostly of squid) is still the major source of income and employment. Depressed wool prices caused a slump in the fortunes of the sheep-farming industry. The UK and Argentina reached agreement in 1995 on oil exploration, and the discovery of oil reserves in the Falklands' territorial waters is revolutionizing prospects for the economy. Tourism, attracting birdwatchers, photographers, and military historians, is steadily growing.