The Republic of Panama is a sovereign nation located in the isthmus connecting North and South America, placing it at the southern tip of Central America. It is bordered by Costa Rica to the west and Colombia to the southeast, with the Caribbean Sea to the north and the Pacific Ocean to the south. The country is renowned for the Panama Canal, a critical global shipping route, and its diverse geography, which includes tropical rainforests, mountainous spine, and extensive coastlines. Panama City serves as the capital and largest urban center, serving as a major hub for international finance and trade.