The principality of Monaco is a tiny country on the Mediterranean Sea and surrounded by France, although the Italian Riviera lies a few kilometres farther east. This is the second smallest independent state in the world (after the Vatican) and is almost entirely urban.
The country is divided into four areas: Monaco-Ville (the old city), the Condamine (port quarter), Monte-Carlo (business and recreation), and Fontvieille (recreation and light industry). With no natural resources to exploit other than its location and climate, the principality has become a resort for tourists and a tax haven for businesses. Monaco is six times the size of the Vatican and the world's most densely populated independent country. (Monaco Wikitravel)