Where Is Monaco and What
Is It Known For?

Answer:

Super yachts in Monte Carlo harbor.

The principality (or princedom) occupies a rocky peninsula and a strip of land on France’s Mediterranean coast.

Monaco is the second smallest country (by size) in the world; only the Vatican City is smaller. Monaco is also the world's second smallest monarchy (and principality to be more exact), and the most densely populated country in the world. The state consists of only one municipality (commune). There is no geographical distinction between the State and City of Monaco, although responsibilities of the government (state-level) and of the municipality (city-level) are different. According to the constitution of 1911, the principality was subdivided into three municipalities:

• Monaco (Monaco-Ville), the old city on a rocky promontory extending into the Mediterranean, known as the Rock of Monaco, or simply Le Rocher (the Rock), where the palace is located;
• Monte Carlo, the principal residential and resort area with the Monte Carlo Casino in the east and northeast;
• La Condamine, the northwest section including the port area, Port Hercule.

Since 1929, the Monaco Grand Prix has been held annually in the streets of Monaco. It is widely considered to be one of the most prestigious automobile races in the world. The erection of the Circuit de Monaco takes six weeks to complete, and the removal after the race another three weeks. The circuit has many elevation changes and tight corners, along with a tunnel. This together with being incredibly narrow and tight makes it perhaps the most demanding Formula One track. Only two drivers have ever crashed into the harbor, the most famous being Alberto Ascari in the 1955 Monaco Grand Prix, just four days before losing his life at Monza. The other was Paul Hawkins, during the 1965 Monaco Grand Prix.

The House of Grimaldi has ruled Monaco since 1297, and the state's sovereignty was officially recognized by the Franco-Monegasque Treaty of 1861. Despite Monaco being independent, its national defence is the responsibility of France.

Monaco’s economy depends on service industries (chiefly tourism, banking and finance) and light industry. Monaco levies no income tax on individuals. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco; celebrities such as Formula One drivers attract most of the attention, but the vast majority of them are less well-known business people.